Investment Criteria This problem will give you some practice calculating NPVs and paybacks. Aproposed overseas expansion has the following cash flows:
Cash Flow | Year |
-$200 | 0 |
50 | 1 |
60 | 2 |
70 | 3 |
200 | 4 |
Calculate the payback, the discounted payback, and the NPV at a required return of 10 percent.