What is the payback period of the business

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Question - In year 0, Pamela founded an artisan cheese company that requires an initial investment of $600,000. The company brings in an annual net cash inflow of $150,000 for seven years to Pamela. At the end of year 7, the business ceases to exist.

Required -

1) Draw the timeline of the project, labeling things properly.

2) What is the payback period of the business?

3) What is the Internal Rate of Return to Pam's business endeavor?

Reference no: EM133164446

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