Question
Zhang Ltd, based in Germany, is considering undertaking a project, which will involve an initial outlay of 300,000. The project has the following cash flows
Zhang Ltd, based in Germany, is considering undertaking a project, which will involve an initial outlay of 300,000. The project has the following cash flows associated with it: If a discount rate of 10% is used to calculate the NPV of the project, which of the following statements is correct? (Assume the cash flows arise at the end of each year.)
The project will yield a positive NPV of 65.5k and have a payback period of 2 years and 3 months.
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The project will yield a positive NPV of 65.5k and have a payback period of 2 years and 9 months. | ||
The project will yield a positive NPV of 365.5k and have a payback period of 2 years and 3 months. | ||
The project will yield a positive NPV of 365.5k and have a payback period of 2 years and 9 months. |
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