Question 2

Part A: The cash flow from today to 4 years into the future looks likes, -260,000, 72000,72000,72000,92000. Assuming a WACC of 10%, what is the payback period?

		a. 3.48
		b. 2.45
		c. 1.56
		d. 4
		e. 3.87

Part B:

The cash flow from today to 4 years into the future looks likes, -260,000, 72000,72000,72000,92000. Assuming a WACC of 10%, what is the NPV?

		a. -18109.42
		b. -17502.42
		c. 15102.56
		d. 16405.56