Question - Sun Peaks Ski Resort is considering an investment of $ 250,000 in a capital project. The project will generate $75,000 in cash inflow each year overthe next 4 years. The company's cost of capital is 10%.
Calculate the following:
a) The payback period
b) The discounted payback period
c) The net present value
d) Would you recommend they go ahead with the project? Why?