Q.3 A company has an investment opportunity costing · 40,000 with the following expected net cash flow
after taxes and before depreciation.
Year. Net cash flow
1 7,000
2 7,000
3 7,000
4 7,000
5 7,000
6 8,000
7 10,000
8 15,000
9 10,000
10 4,000
Using 10% as the cost of capital determine the flowing:
1. Payback period
2. Net present value at 10% discount factor
3. Internal rate of return with the help of 10% and 15% discount factor​