What is the projects payback

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Reference no: EM133012032

Problem - Braun Industries is considering an investment project which has the following cash flows:

Year Cash Flow

0 -$1,000

1 400

2 300

3 500

4 400

The company's cost of funds is 10 percent. What is the project's payback, internal rate of return, and net present value?

A. Payback = 2.4, IRR = 10.00%, NPV = $600.

B. Payback = 2.4, IRR = 21.22%, NPV = $260.

C. Payback = 2.6, IRR = 21.22%, NPV = $300.

D. Payback = 2.6, IRR = 21.22%, NPV = $260.

E. Payback = 2.6, IRR = 24.12%, NPV = $300.

Reference no: EM133012032

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