Washington Tenters Inc. specializes in making advanced camping tents. The company is expanding its operations and wants to open a new plant costing $600,000. Please Calculate: a. Payback period b. Net Present Value. (Assume the company expected 15% rate of return). The company expects varying annual net cash flows as follows;   Year Year 1 Year 2 Year 3 Year 4 Year 5 Net Cash Flow $120,000 $150,000 $160,000 $170,000

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Washington Tenters Inc. specializes in making advanced camping tents. The company is expanding its operations and wants to open a new plant costing $600,000.

Please Calculate:

a. Payback period

b. Net Present Value. (Assume the company expected 15% rate of return).

The company expects varying annual net cash flows as follows;

 

Year Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow $120,000 $150,000 $160,000 $170,000
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