Compute the discounted payback period of project

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1. Compute the NPV of a project with the following information. The IRR is 9%. The project life is 3 years. The initial cost is $19,000. In years 1 and 2 the cash inflows are $4,500 and $5,500, respectively. Cash flow in year 3 is missing. WACC is 12%.

2. Your required rate of return is 10 percent. If you invest $3,000 today you will have the following cash inflows: 2000 at t=1, 500 at t=2, 2000 at t=3, and 2000 at t=4. Compute the Discounted Payback Period of the project.

Reference no: EM132053012

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