What is the payback period for this project

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Reference no: EM133379588

Question: An investment of $83 generates after-tax cash flows of $48.00 in Year 1, $74.00 in Year 2, and $129.00 in Year 3. The required rate of return is 20 percent. The net present value is Round to two decimal places.

McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $847,500, and $1,215,000 over the next three years. What is the payback period for this project? Round to four decimal places.

Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project?

Year Project

0 ($11,368,000)

1 $ 2,187,589

2 $ 3,787,552

3 $ 3,325,650

4 $ 4,115,899

5 $ 4,556,424

Round to two decimal places.

Reference no: EM133379588

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