A project will require an initial investment of 600000 if


Question - A project will require an initial investment of $600,000 and is expected to generate the following cash flows:

Year 1    $100,000

Year 2    $250,000

Year 3    $250,000

Year 4    $200,000

Year 5    $100,000

(a) What is the project's payback period?

(b) If the required rate of return is 20% and taxes are ignored, what is the project's net present value?

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Accounting Basics: A project will require an initial investment of 600000 if
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