What is the payback period for the project

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1. Fairfax Paint is evaluating a project that would cost 7,225 dollars today. The project is expected to have the following other cash flows: 2,751 dollars in 1 year, 2,849 dollars in 2 years, and 2,469 dollars in 4 years. The internal rate of return for the project is 5.07 percent and the cost of capital for the project is 9.36 percent. What is the net present value of the project?

2. Fairfax Pizza is evaluating a project that would cost 99,000 dollars today. The project is expected to have the following other cash flows: 28,100 dollars in 1 year, 24,700 dollars in 2 years, 56,341 dollars in 3 years, and 9,900 dollars in 4 years. The cost of capital of the project is 6.18 percent. What is the payback period for the project? Round your answer to 2 decimal places (for example, 2.89, 14.70, or 6.00).

Reference no: EM131891524

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