Problem Sheet 1 - Investment criteria You are looking at an investment opportunity where you have estimated the following cash flows: Year Cash Flow 0 $ -165,000 1 $ 63,120 2 $ 70,800 3 $ 91,080 The required return for assets of this risk is 12% and the company has a required payback period of 2 years. Compute the following: 1) Net present value 2) Payback period 3) Discounted payback period 4) Internal rate of return

Problem Sheet 1 - Investment criteria You are looking at an investment opportunity where you have estimated the following cash flows: The required return for assets of this risk is 12% and the company has a required payback period of 2 years. Compute the following: 1) Net present value 2) Payback period 3) Discounted payback period 4) Internal rate of return