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Calculate the net present value and payback period

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Reference no: EM131711923

Question - Sun Peaks Ski Resort is considering an investment of $ 250,000 in a capital project. The project will generate $75,000 in cash inflow each year overthe next 4 years. The company's cost of capital is 10%.

Calculate the following:

a) The payback period

b) The discounted payback period

c) The net present value

d) Would you recommend they go ahead with the project? Why?

Reference no: EM131711923

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