What is the discount payback of the project

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Reference no: EM13258616

JetBlue is adding an Embraer 190 aircraft to its existing fleet at a cost of $15 million. The company expects to bring in additional cash flows of $2.5MM, $3MM, $3.5MM, $4.0MM and $4.2MM over the next five years. At the end of the fifth year, the company expects to sell the plane for $8MM. Required rate of return is 13%.

A. What is the NPV of the project?
B. What is the discount payback of the project?

Reference no: EM13258616

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