his Question 1 pt 5 of 31 0 complete This Test 31 pts E Ques

his Question: 1 pt 5 of 31 (0 complete) This Test: 31 pts E Question He What is the payback period of a project with an initial in vestment of $15,600 and annual cash flows of $1,1707 The payback period is years. (Round to two decimal places.)

Solution

Question 1

ANswer

=15600/1170

=13.33 Years

Question No 2

NPV =-420000+110000*1/(1+.09)^1 +300000*1/(1+.09)^2 + 3400000*1/(1+.09)^3

=195963.81