A company will invest with an initial investment of $1,000,000.
Assuming a market interest rate of...
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Finance
A company will invest with an initial investment of $1,000,000.Assuming a market interest rate of 5% and cash flow for 5 years isexpected in the table below:
Year
Cash Flow
1
425,000
2
384,000
3
321,500
4
282,500
5
200,000
Calculate the PAYBACK PERIOD andNPV!
Answer & Explanation
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4.2 Ratings (824 Votes)
Payback period full years until recovery unrecovered cost at the start of the yearcash flow during the year 2 years 1000000 809000 321500 2 years
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