Question: An investment has the following cash flow with a discount rate of 10%. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
| An investment has the following cash flow with a discount rate of 10%. | |||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
| -4000 | 1000 | 1000 | 1000 | 1000 | 1000 | ||
| What is the Payback Period? | Years = | ||||||
| Calculate the Net Present Value (NPV). | NPV = | ||||||
| Should you make the investment? Circle one: | Yes / No / Other | ||||||
| Why? | |||||||
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