FIN 575

Offshore Drilling Products, Inc imposes a payback cutoff of three years for its international investment projects. What is the payback of the following project; $38,000, $16,000, $19,000, $18,000, $5,000?

. A project provides an annual cash flow of $1,000 for eight years and requires a $4,900 investment today. If an 8 percent return is required, what are the NPV and IRR?