Calculate the Payback Period of the project

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Question - PT C plans to implement a project that requires an initial investment of $45,000 with a project life of 5 years. The company has a cost of capital of 12%. The project has been estimated to generate the following cash inflows:

Year

CF

1

12,500

2

22,500

3

20,500

4

23,500

5

10,000

Based on the information above calculate:

1. Calculate the NPV of the project.

2. Calculate the Payback Period of the project.

3. Based on the above calculations, should PT C carry out the project?

Reference no: EM133054328

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