Ace Inc is considering investing in a project that costs $560,000. The cost of capital is calculated to be 9% and Ace Inc estimate that the project will generate net cash flows of $80,000 over a 15-year period.

Calculate the values below and explain whether or not an investment should be made.

1) Payback period

2) Net present value

3) Internal rate of return

Answer rating: 100% (QA)

Payback Period The payback period is the length of time it takes for an investment to generate enoug... View the full answer