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Lincoln Coal is planning a new coal mine, which will cost $430,000 to build, with the expenditure occurring next year. The mine will bring cash inflows of $200,000 annually over the subsequent seven years. It will then cost $170,000 to close down the mine over the following year. Assume all cash flows occur at the end of the year. Alternatively, Lincoln Coal may choose to sell the site today. What minimum price should Lincoln set on the property, given a 16% required rate of return?
A)
$325,859.
B)
$280,913.
C)
$376,872.

The key to this problem is identifying this as a NPV problem even though the first cash flow will not occur until the following year. Next, the year of each cash flow must be property identified; specifically: CF0 = $0; CF1 = -430,000; CF2-8 = +$200,000; CF9 = -$170,000. One simply has to discount all of the cash flows to today at a 16% rate. NPV = $280,913.
怎样算都是选择A，$325,859问题出在哪里呢 请指教。

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Which of the following statements about the payback period is NOT correct?
A)
The payback method considers all cash flows throughout the entire life of a project.
B)
The payback period provides a rough measure of a project's liquidity and risk.
C)
The payback period is the number of years it takes to recover the original cost of the investment.

The payback period does not take any cash flows after the payback point into consideration.

payback period method ignores the time value of money and the risk of the project. --- CFA 2011 corporate finance page 13