What is the payback period for the project? if peach paving, Ask an Expert

Finance

Suppose Peach Paving, Inc. invests $1 million today on a new construction project. The project will generate annual cash flows of $150,000 in perpetuity. The appropriate annual discount rate for the project is 10 percent.

a) What is the payback period for the project? If Peach Paving, Inc.'s cutoff is 10-years, should the project be accepted? What is the NPV of the project?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M951355

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