A) find the payback period for the following project: project x
Answer: The Internal Rate of Return (IRR) for the project can be calculated using the following equation: IRR= [(FV/PV)]1/n – 1 where FV is the future value at the end of year 10 ($5431), PV is the initial investment amount ($2593), and n is 10 years. Plugging these numbers into our equation yields an IRR of 0.14, or 14%.
This suggests that if this project were to be undertaken, it would yield a return on investment rate of 14% over ten years; in other words, for every $100 invested initially into this project, one could expect to receive back $114 after ten years. Additionally, since this rate is higher than what could be earned through risk-free investments such as bonds or certificates of deposit (CDs), it may be worth considering taking on this project provided there are no major risks involved with doing so.