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Calculate the payback period of the project

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Reference no: EM133122998

Question - PT C plans to implement a project that requires an initial investment of $45,000 will: 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

20,000

2

15,000

3

18,500

4

23,500

5

10,000

Based on the information above calculate:

a) Calculate the NPV of the project?

b) Calculate the Payback Period of the project?

c) Based on the above calculations, should PT C carry out the project?

Reference no: EM133122998

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