What is the project payback period-discounted payback period

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1. A company is interested on starting a project that will cost $127,000. They expect to receive $43,000 from it every year for the next 5 years. If the company’s cost of capital is 7%, what is the project’s NPV? IRR? Payback period? Discounted payback period? Should the project be accepted?

2. Morocco Corporation is considering a project that would cost $40,000. They expect to receive from it $10,000 during the first year, $13,000 during the second year, $13,000 during the third year, and $7,000 on the fourth year. The company’s cost of capital is 9%. What is the project’s NPV? IRR? Payback period? Discounted payback period? Should the project be accepted?

Reference no: EM131605936

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