What is the projects payback period

Reference no: EM133326389

Case: Your restaurant's new project, creating a gluten-free menu, is expected to have the following cash flows. The company requires a project to have a payback period less than 2 years. The company's required rate of return is 18%.

Year	Cash Flows	Cumulative cash flows
0	-$850,000
1	$300,000
2	$400,000
3	$500,000

Question 1: What is the project's payback period? (Calculate it by filling out the cumulative cash flows

Question 2: What is the project's internal rate of return (IRR)?

Reference no: EM133326389

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