Question: 2 DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the


2 DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the net present value of this project? tion Select one: a. $100,328 b. $87,417 c. $96,320 d. $104,089 The pay back period of an investment that achieves the following cash flow in a row (0,1000,2000,4000) and its initial outlay equals $5000 is:- en Select one: a. 2 years and 5 months b. 3 years and 5 months c. 3 years and 6 months d. 2 years and 6 months
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