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A manufacturing plant will require an initial investment of $580,000 and is expected to generate the following cash flows: Year 1$ 60,000 Year 2250,000 Year

A manufacturing plant will require an initial investment of $580,000 and is expected to generate the following cash flows:

Year 1$ 60,000

Year 2250,000

Year 3250,000

Year 4200,000

Year 5100,000

Instructions:

1)What is the manufacturing plants payback period?

2)If the required rate of return is 20% and taxes are ignored, what is the manufacturing plants net present value?

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