What is the discounted payback period

Reference no: EM132066078

Question: The Redline Software Company is considering a project with the following cash flows. The required rate of return is 11%.

Prj 1 cash flows ($)

Yr 0 -334,000

Yr 1 80,000

Yr 2 120,000

Yr 3 120,000

Yr 4 140,000

a) What is the discounted payback period?

b) What is the project's net present value and should it be accepted? Why?

c) What is the project's internal rate of return and should it be accepted? Why?

Reference no: EM132066078

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