Homework answers / question archive / Calculate the payback period and the NPV using the information below

Calculate the payback period and the NPV using the information below

Business

Share With

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%