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    NPV/Discount Payback Period

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    The new project has a cost of $52,125, its expected net cash inflows are $12,000 per year for 8 years, and its cost of capital and its cost of capital is 12 percent.

    What is the project's discount period and NPV

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    https://brainmass.com/business/capital-budgeting/npv-discount-payback-period-136413

    Solution Preview

    Pay Back Period (PBP):

    PBP = I/E

    where, I is the initial investment, $52,125 in this case;
    E is the ...

    Solution Summary

    A project's discount period and NPV are calculated in an attached Excel document.

    $2.19

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