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Question 2 Partially correct Mark 1.00 out of 3.00 P Flag question Payback Period and NPV: Taxes and Straight-Line Depreciati

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Answer #1

(b) 1. Payback period = Investment / Annual cash inflows

= 500000 / 165000

= 3.03 years

2. Net present value = Present value of cash inflows PVIA(20%, 5) - Investment

= 165000*2.991 - 500000

= $-6485

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