Given the following attributes of an investment project with a five year life, and an after tax discount rate of 12 percent, calculate the net present value (NPV) and the payback period of the project investment outlay, year 0, $5,000 after tax cash inflows, year 1, $800 year 2, $900 year 3, $1,500...

The projects NPV 459 and the unadjusted payback period 40 y ...

Given the following attributes of an investment project with a five-year life, and an after-tax discount rate

Question:

Given the following attributes of an investment project with a five-year life, and an after-tax of 12 percent, calculate the (NPV) and the of the project: investment outlay, year 0, $5,000; after-tax cash inflows, year 1, $800; year 2, $900; year 3, $1,500; year 4, $1,800; and year 5, $3,200. (Use the built-in function of Excel to estimate the NPV of this project.)

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal... Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...