1. Suppose a company had an initial investment of $40,000. The cash flow for the next five years are $19,000, $15,000, $16,000, $13,000, and $17,000, respectively. The interest rate is 8%. Enter your answer rounded to 2 DECIMAL PLACES. What is the discounted payback period? If the firm requires a discounted payback periods 4 years or less, will the project be accepted?
2. Peaceful Cruises wants to build a new cruise ship that has an initial investment of $250 million. It is estimated to provide an annual cash flow over the next 10 years of $35 million per year. The discount rate is 5%. What is the discounted payback period? Enter your answer rounded to two decimal places.
3. LakeCraft is considering investing in a transport ship with an expected life of 15 years that costs $125 million and will produce net cash flows of $9 million per year. LakeCraft's cost of capital is 6%. Enter your answers rounded to 2 DECIMAL PLACES. What is the payback period?What is the net present value (NPV) of the project?