Question
Assume that the firm invests $73,000 today to get $14,000 at Year 1 (i.e. one year from now), $22,000 at Year 2, $15,000 at Year
Assume that the firm invests $73,000 today to get $14,000 at Year 1 (i.e. one year from now), $22,000 at Year 2, $15,000 at Year 3, $30,000 at Year 4, $17,500 at Year 5, $16,500 at Year 6. Whats the Net Present Value of this investment? Assume the Interest (discount) rate of 10.70%.
Group of answer choices
$7,235.63
$10,236.24
$9,316.35
$8,126.58
Assume the firm invests $120,000 today to get $20,000 at Year 1, $30,000 at Year 2, $35,000 at Year 3, $25,000 at Year 4, $40,000 at Year 5, and $16,500 at Year 6. Assuming the Interest (discount) rate of 9.1%, what is the (Non-Discounted) Payback period for this project?
Group of answer choices
5.42 years
5.31 years
4.25 years
4.41 years
Same facts as above: what is the Discounted Payback Period for this project?
Group of answer choices
4.25 years
5.61 years
5.36 years
We do not have sufficient information to answer this question.
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