Calculate the payback period for the following:

Project B: Initial Cost $100,000 earns $25,000 per year.

XYZ Corp. is evaluating two projects. Project A has $50 thousand in up-front costs, and has after-tax cash flows of $10 thousand, $20 thousand, and $30 thousand during the first three years. Project B has $80 thousand in up-front costs, and has after-tax cash flows of $15 thousand, $30 thousand, and $50 thousand. The companys WACC is 6%.

What is the NPV for project A?

A project will cost $20 thousand to initiate. The after-tax cash flows are $6 thousand per year for four years.

What is the NPV if the discount rate is 10%?