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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%

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Solution Summary

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

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