What is the net present value of this investment

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Question: 1. Fabiano Brothers Co. is considering an investment that requires immediate payment of $550,000 and provides expected cash inflows of $100,000 annually for eight years. What is the investment's payback period?

2. If Kelsey K. Company invests $250,000 today, it can expect to receive $50,000 at the end of each year for the next seven years, plus an extra $32,000 at the end of the seventh year. What is the net present value of this investment assuming a required 8% return on investments?

Reference no: EM131539893

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