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What is the payback period for project

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Reference no: EM131758106

Siegmeyer Corp. is considering a new inventory system, Project A, that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. Siegmeyer's required rate of return is 8%

  • What is the payback period for this project?
  • What is the net present value of this project?
  • What is the internal rate of return?
  • Based on the NPV should they accept or reject?
  • Based on the Internal rate of return should the accept or reject?

Reference no: EM131758106

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