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

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%.

YEAR         0                     1                      2                     3
Cash flow  -200,000     100,000          100,000           150,000
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