The product design costs are $250,000. Use a discount rate of 9 percent for the projected cash

Question:

The product design costs are $250,000. Use a of 9 percent for the projected cash in-flows. Assume a 5-year lifespan. Calculate the projected NPV, the payback time, and the IRR.

Projected Year Cash In- Flows ($) 120,000 2 90,000 75,000 50,000 20,000 3.

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...