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What is the NPV for the project

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Reference no: EM133092704

Question - Capital Budgeting - Primus Corp. is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45 percent. The cost of this project will be $7,125,000. It will result in additional cash flows of $1,875,000 for the next eight years. The company uses a discount rate of 12 percent.

Required -

1. What is the payback period?

2. What is the NPV for the project?

3. What is the IRR for the project?

Reference no: EM133092704

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