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What is the payback period for the following set of cash flows Year Cash Flow 0 $ 8,200 1 1,800 2 2,900 3 2,800 4

What is the payback period for the following set of cash flows

Year Cash Flow
0 $ 8,200
1 1,800
2 2,900
3 2,800
4 1,200

Multiple Choice

  • 3.58 years

  • 3.53 years

  • 3.88 years

  • 3.76 years

  • 3.60 years

An investment project has annual cash inflows of $5,100, $6,200, $7,000 for the next four years, respectively, and $8,300, and a discount rate of 18 percent.

What is the discounted payback period for these cash flows if the initial cost is $8,000?

Multiple Choice

  • 3.66 years

  • 1.33 years

  • 0.83 years

  • 1.83 years

  • 2.58 years

What is the IRR of the following set of cash flows?

Year Cash Flow
0 $9,155
1 6,800
2 3,500
3 3,200

Multiple Choice

  • 26.4%

  • 27.72%

  • 26.93%

  • 25.08%

  • 25.87%

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