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Consider an investment project that requires an investment of $110000$ in moment zero with the expected stream of cash flows $($CF$)$ for the next five years as follows: Year CF$($f$)$

$160000$

$272000$

$398000$

$4105000$

$5120000$ Assuming a discount rate of $12\%,$ the net present value of the project and the discounted payback period are, respectively:

Question $7$Answer

a$.$

$247622$ and $1\mathrm{.}97$ years

b$.$

$245697$ and $1\mathrm{.}71$ years

c$.$

It is not possible to compute with given information

d$.$

$205544$ and $1\mathrm{.}98$ years