Alyeska Salmon Inc., a large salmon canning firm operating out of Valdez, Alaska, has a new automated production line project it is considering. The project has a cost of $$300,000$ and is expected to provide after$-$tax annual cash flows of $$80,000$ for seven years. The cost of capital for the firm is $15$ percent.

What is the payback period of the project?

$3\mathrm{.}33$ years

$3\mathrm{.}75$ years

$4\mathrm{.}25$ years

$4\mathrm{.}82$ years

$5\mathrm{.}33$ years

Question $38$

Continued:

Alyeska Salmon inc., a large salmon canning firm operating out of Valdez, Alaska, has a new automated production line project it$.$ is considering. The project has a cost of $$300,000$ and is expected to provide after$-$tax annual cash flows of $$80,000$ for seven years. The cost of capital for the firm is $15$ percent.

What is the NPV of the project?