What is the net present value of the period

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Question - The Drow ranger company is considering a new product line to supplement its range line. It is anticipated that the new product line will involve each investment of P700,000 at time 0 and P1.0 million in year 1. After-tax cash inflows of P250,000 are expected at year 2, P300,000 in year 3, P350,000 in year 4, and P400,000  each year thereafter although year 10. Though the product line might be viable after year 10, the company prefers to be conservative and end all calculations at that time

a) If the refined rate of return is 15%, what is the net present value of the period?

b) What is its internal rate of return?

c) What is the project's payback period?

Reference no: EM133053848

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