Two young entrepreneurs want to invest 150000 in a restaurant.

Their business plan shows that the restaurant will generate

Year Cashflow

1 $15,000

2 $15,000

3 $25,000

4 $25,000

5 $25,000

6 $40,000

7 $40,000

8 $40,000

9 $45,000

10 $50,000

They want to earn at least 11% return

They also would like to have their initial investment recovered within 7 Years.

Find

Present Value

Net Present Value

Payback period

Should these entrepreneurs proceed with this investment?