What is the payback period of project

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1. A project costs $450 and has cash flows of $110 for the first three years and $75 in each of the project's last five years. What is the payback period of the project?

a. The project never pays back

b. 5.33 years

c. 4.60 years

d. 6.00 years

e. 5.67 years

2. Suppose a project costs $400 and produces cash flows of $100 over each of the following seven years. What is the IRR of the project?

a. There is not enough information; a discount rate is required

b. 10.0%

c. 16.3%

d. 13.0%

e. 24.3%

Reference no: EM132020341

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