Calculate the NPV for a required rate of return of 6.5 percent. Also calculate the IRR and the Payback Period. Before starting your calculations, review the following materials on NPV, IRR and Payback Period. Submit your Cash Flow Report and Calculations and be sure to show your calculations in Excel and provide a narrative analysis. Your narrative analysis should summarize the results of your analysis and make recommendations for the benefit of the company.
Question 7: If the payback period is two years, which application should be selected? Payback period is the time by which cumulative cash flow=0 and the preferable application would be Application 1. Year cash flow(million/=) Cumulativecash flow(millions/=) 0 -1.5 -1.5 1 0.8 -0.7 2 0.7 […]