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You are analyzing a project and have gathered the following data: ...

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Finance

You are analyzing a project and have gathered the following data:

Year Cash Flow
0 -$165,000
1 $56,400
2 $61,800
3 $72,000
4 $75,000
Required payback period: 2.5 years
Required return:

(11%)

1. What is the payback period for this project? Should you take this project based on the payback period?

2. What is the internal rate of return for this project? Should you take this project based on the internal rate of return?

3. What is the net present value for this project? Should you take this project based on the net present value?

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