What is the discounted payback period

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Question - Brayani Kids Ltd. an airline caterer, is purchasing refrigerated trucks at a total cost of $3.25 million. After-tax net income from this investment is expected to be $750 000 for the next 5 years. Annual depreciation expense was $650 000. The company's cost of capital is 17 percent.

a. What is the discounted payback period?

b. Calculate the ARR?

c. What is the NPV on this investment?

d. Calculate the IRR?

Reference no: EM133251831

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