. A company ABC is considering an investment project that is expected to produce cash flow of $150,000 for each of the next 5 years. The firm has required return of 10%. The project
requires an initial investment of $500,000. The payback period for the project is
3.33
5
2
3

Now this company ABC is considering an investment project that is expected to produce cash flow of $150,000 for the next five years. The firm has a required return of 10%. The project requires an
initial investment of $500,000. The NPV is:
$166,666.70
$568,618.00
$68,618
$12,568.60