A project will cost $10,000 up front and $1,000 each year thereafter. The project will bring in $1,000 the first year, then $5,000 each year after. What is the breakeven point (payback period) for the project?

What is the NPV of a project that COSTS $0.5M today and cash inflows $5,000 monthly, paid annually, for ten years from today if the opportunity cost of capital is 6% ?

Let's say you have a project which will cost $25mm to build or buy.  It will produce after-tax cash flows of $4mm for 9 years with each cash flow occurring at the end of the year.  At the end of the 9 years, you will also receive a residual value payment of $3mm.  What is the IRR of the project?  Round to the nearest one decimal place and use the % symbol.  6.3% would be the form of a correct answer.

The question is: Suppose a company's payback period cutoff is two years. Which of these two projects should be chosen? Project A: Year 0 -> -$20,000 ; Year 1 -> $13,200; Year 2 -> $8,300; Year 3 -> $3,200 Project B: Year 0 -> -$24,000; Year 1 -> $14,100; Year 2 -> $9,800; Year 3 -> $7,600   The solution uses the following equations: for Project A : 1+(Initial Investment - Year 1)/Year 2 or 1+(20,000 - 13,200)/8300 = 1.81 years for Project B: 2+(Initial Investment - Year 1 - Year 2)/Year 3 or 2+(24,000 - 14,100 - 9,800)/7,600 = 2.01 years   The question is if we are evaluating both project A and B on the same timeline, why do we have two different equations?