Find the payback period for this venture

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Reference no: EM131404553

After a bad accident Anton receives a large sum in compensation. He is thinking about using it to invest in a stretch limousine to hire out for special occasions. The cost of the limousine is £100,000. Anton is due to retire in six years, at which stage he thinks he will be able to sell the limousine for £40,000. The net cash inflows for the venture, after allowing for the driver's wages and other direct expenses are:

(a) Find the payback period for this venture.

(b) Calculate the net present value using a discount rate of 8%.

Reference no: EM131404553

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