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An investment is expected to generate the following cash flows: year 0 -2000000 year 1 1000000 year 2 0 year 3 500000 year 4 500000
An investment is expected to generate the following cash flows:
year 0 -2000000
year 1 1000000
year 2 0
year 3 500000
year 4 500000
year 5 100000
The discount rate is 10% per year
a) what is the net present value of the investment? Show your work
b) what is the payback period of the investment? Show your work
c) What is the discounted payback period of the investment?
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
5th Edition
1260013987, 9781260013986
