What is the payback period for this project

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Question - You are evaluating an investment project costing $11,000 initially. The project will lose 5,000 in year 1 and earn 9,000 in year 2 and then create net cash flows of 4,400 per year for 8 more years, according to the following 10-year schedule:

Year 0: -11000

Year 1: -5000

Year 2: 9000

Year 3: 4400

Year 4-10: 4400

What is the payback period for this project?

If the appropriate discount rate is r = 5%. What is the NPV of this project?

Reference no: EM132980419

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