What is the discounted payback of the project

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Reference no: EM13937990

You invest in a project that costs $1,000,000 and would yield a EBIT of $300,000 per year. The interest expense is $20,000 and the tax rate is 20%. The EBIT is expected to increase by 1.8% every year. The MARR is found to be 12%.

a) What is the discounted payback of the project?

b) What is the NPV, IRR of the project after 30 years?

c) IRR project at 30 years?

Please show all calculations

Reference no: EM13937990

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