A5. (Investment criteria) Compute the NPV, IRR, and payback period for the following investment.

A5. (Investment criteria) Compute the NPV, IRR, and payback period for the following investment.

Corporate Financial Management (3rd Edition): Emery, Douglas R., Finnerty, John D., & Stowe, John D. (2007)

Individual assignment: Text Problem Set IV: Chapter 9, Problems

A5. Compute the NPV

A5. (Investment criteria) Compute the NPV, IRR, and payback period for the following investment. The cost of capital is 10%.

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Cash flow -200,000 100,000 100,000 150,000  SOLUTION