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  3. todays cash outflows: initial investment $1,500,00

todays cash outflows: Initial investment $1,500,000 future net cash flows . year 1- $400,000 year...

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Accounting

todays cash outflows: Initial investment $1,500,000

future net cash flows . year 1- $400,000 year 2- $400,000 year 3- $400,000 year 4- $400,000 year 5-$400,000

1. Calculate the payback period of polo shirts. In other words, how many years will it take for the company to recoup the initial investment?

2. Calculate the NPV of polo shirts. In other words, when comparing apples to apples (the present value of cash inflows to the present value of cash outflows), what will the expected profit of the project be?

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