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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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Solution Summary

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

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Pay Back Period (PBP):

PBP = I/E

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

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