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What is the payback period for this project

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Reference no: EM133164391

Question - Primus Ltd is planning to convert an existing warehouse into a new manufacturing plant that will increase its productive capacity by 45%. The cost of this project will be $7,125,000. It will result in additional cash flows of for the next 8 years. The discount rate is 12%.

Required -

1. What is the payback period for this project?

2. What is the NPV for this project?

Reference no: EM133164391

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