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Year O Cash flow is -40,000 Year 1 Cash Flow is 16,000 Year 2 Cash Flow is 18,000 Year 3 Cash Flow is 20,000 Year
Year O Cash flow is -40,000 Year 1 Cash Flow is 16,000 Year 2 Cash Flow is 18,000 Year 3 Cash Flow is 20,000 Year 4 Cash Flow is 24,000 For the given cash flows calculate both the payback period and the NPV. Use a 2 year benchmark in the payback decision rule and a discount rate of 12% for calculating the NPV. Decide whether the project should be chosen and explain why
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