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Calculation of Discounted Payback Period and Net Present Value

Question

Rebus Company is trying to make a decision between two projects. Their calculations are as below.

PROJECT A

PROJECT B

Cash inflow

cumulative cash inflow

Cash inflow

cumulative cash inflow

8500

8500

6500

6500

9000

17500

6000

12500

9500

27000

7000

19500
  1. Calculate payback period
  2. Calculate discounted payback period
  3. Calculate net present value
  4. Calculate internal rate of return

Summary

This question belongs to accounting and discusses about calculation of payback period, discounted payback period, net present value and internal rate of return for a given projects.

Total word count: 300

 

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