Calculate the payback and discounted payback periods, Financial Accounting

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Assume that the company has an investment opportunity. Building a new factory would cost $750 million but would reduce cash operating costs by $150 million per year for the next 10 years. The factory could be sold for $200 million at the end of the 10 years. The relevant discount rate for a project with this risk is 15%. Ignore depreciation and any taxes.

Calculate the payback and discounted payback periods (remember, since this is a limited time project, it is possible not to have payback, which would mean that the project never breaks even)

Calculate the IRR%

Calculate the NPV


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