Suppose an investment requires spending 50,000 today. The investment will generate cashflows of 12,000 per year...

 

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Suppose an investment requires spending 50,000 today. The investment will generate cashflows of 12,000 per year for 5 years. At the end of 5 years, the investment can be wound up by selling it for 5,000. The relevant discounnt rate is 10% a. b. C. What is the payback period of the investment? What is the net present value of the investment? What is the interal rate of return on the investmnet? (2 marks) (4 marks) (4 marks) Suppose an investment requires spending 50,000 today. The investment will generate cashflows of 12,000 per year for 5 years. At the end of 5 years, the investment can be wound up by selling it for 5,000. The relevant discounnt rate is 10% a. b. C. What is the payback period of the investment? What is the net present value of the investment? What is the interal rate of return on the investmnet? (2 marks) (4 marks) (4 marks)

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Answer a To find the payback period we need to calculate the time it takes for the cumulative cash f... View the full answer