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previous step and the initial outlay. t is easy to Veriy that you will get the same IRR as in your original calculation only if
previous step and the initial outlay. t is easy to Veriy that you will get the same IRR as in your original calculation only if you use the IRR as the reinvestment rate in the previous step. QUESTIONS AND PROBLEMS Basic (Questions 1-18) 1. Calculating Payback (LO2) flows? What is the payback period for the following set of cash Year Cash Flow -$5,500 1,300 1,500 0 1 2 1,900 3 400 4 Click here for a description of Table: Questions and Problems 1. 2. Calculating Payback (LO2) An investment project provides cash inflows of $585 per year for eight years. What is the project payback period if the initial cost is $1,700? What if the initial cost is $3.300? What if it is $4,900? McKernan Inc. imposes a payback cutoff of three years for its 3. Calculating Payback (LO2)
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