Question
James company will invest with an initial investment of $ 3 million. The assumption of a market interest rate of 5% and a cash flow
James company will invest with an initial investment of $ 3 million. The assumption of a market interest rate of 5% and a cash flow of 5 years is expected as shown in the table below
| Year | Cash Flow |
| 1 | 700.000 |
| 2 | 750.000 |
| 3 | 650.000 |
| 4 | 800.000 |
| 5 | 800.000 |
Calculate: payback period and NPV and provide a description of your analysis related to the investment.
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Advanced Accounting
Authors: Paul Fischer, William Taylor
6th Edition
0538841265, 978-0538841269
