Calculate the payback period for a project that costs $65,000 and returns $21,000 at the end of each year.

Express your answer in years rounded to 2 decimal places.

 

2. Andy's Fishing Charters is considering the purchase of a new boat costing $75,000. The boat is expected to increase profits by $10,000 per year for each of the next 8 years. After 4 years, the boat will require maintenance of $8,000. After the 8 years, the boat will be sold for $34,000.

Calculate the NPV of the boat using a cost of capital of 12%. Round your answer to the nearest dollar.

 

3. An investment opportunity requires an initial cash outlay of $70,000. Thereafter, it is expect to earn profits of $15,000 per year for 6 years.

Calculate the IRR for the investment.

Express your answer as a percent rounded to 2 decimal places but don't include the % sign.

 

4. You are considering an investment that will cost $15,000 and generate returns of $4,000 at the end of year 1, $5,000 at the end of year 2, $6,000 at the end of year 3 and $3,000 at the end of year 4.

Calculate the NPV of the investment using a cost of capital of j₁=7.5%. Round your answer to the nearest dollar.