Zhang Ltd, based in Germany, is considering undertaking a project, which will involve an initial outlay of 300,000 The project has the following cash flows associated with it If a discount rate of 10 is used to calculate the NPV of the project, which of the following statements is correct (Assume the cash flows arise at the end of each year ) The project will yield a positive NPV of 65 5k and have a payback period of 2 years and 3 months The project will yield a positive NPV of 65 5k and have a payback period of 2 years and 9 months The project will yield a positive NPV of 365 5k and have a payback period of 2 years and 3 months The project will yield a positive NPV of 365 5k and have a payback period of 2 years and 9 months

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Question: Zhang Ltd, based in Germany, is considering undertaking a project, which will involve an initial outlay of 300,000. The project has the following cash flows

Zhang Ltd, based in Germany, is considering undertaking a project, which will involve an initial outlay of 300,000. The project has the following cash flows associated with it: If a discount rate of 10% is used to calculate the NPV of the project, which of the following statements is correct? (Assume the cash flows arise at the end of each year.)

		The project will yield a positive NPV of 65.5k and have a payback period of 2 years and 3 months.
		The project will yield a positive NPV of 65.5k and have a payback period of 2 years and 9 months.
		The project will yield a positive NPV of 365.5k and have a payback period of 2 years and 3 months.
		The project will yield a positive NPV of 365.5k and have a payback period of 2 years and 9 months.

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