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    Payback period, the NPV, and the IRR

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    Calculate the payback period and the NPV using the information below.

    Cost of Capital = 13%
    Initial Investment 100,000
    Cash inflow 1 15,000
    Cash inflow 2 20,000
    Cash inflow 3 30,000
    Cash inflow 4 35,000
    Cash inflow 5 40,000

    the IRR is closest to:
    a. 3.5%
    b. 5.5%
    c. 10.5%
    d. 20.5%

    © BrainMass Inc. brainmass.com October 1, 2020, 7:27 pm ad1c9bdddf
    https://brainmass.com/business/discounted-cash-flows-model/payback-period-the-npv-and-the-irr-103223

    Solution Summary

    Calculates the payback period, the NPV, and the IRR for a stream of cash flows.

    $2.19

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