Estimate the payback period in years for the project

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Given the following attributes of an investment project with a five-year life: investment outlay, year 0,$6,980; after-tax cash inflows, year 1, $890; year 2, $990; year 3, $2,400; year 4, $2,700; and year 5,$4,100.

Question (a) Use the built-in NPV function of Excel to estimate the NPV of this project. Assume anafter-tax discount rate of 10.0%

Question (b) Estimate the payback period, in years, for this project under the assumption that cash inflows occur evenly throughout the year.

Reference no: EM132997836

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