Adequate information:
Discount rate= 15%
Initial investment of Project NP-30 = $735,000
Cash flow per year from Project NP-30 for next 5 years = $239,000
Initial investment of Project NX-20 = $460,000
Cash flow from Project NX-20 at Year 1= $130,000
Cash flow from Project NX-20 at Year 2 = $143,000
Cash flow from Project NX-20 at Year 3 = $157,300
Cash flow from Project NX-20 at Year 4 = $173,030
Cash flow from Project NX-20 at Year 5 = $190,333
To compute: Payback period,
Introduction: IRR is the rate that produces zero NPV, that is, the

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Chapter 5 Solutions
CORPORATE FINANCE--CONNECT ACCESS CARD
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