Question
1. Payback period: The Ball Shoe Company is considering an investment project that requires an initial investment of $542,000 and returns after-tax cash inflows of
1. Payback period: The Ball Shoe Company is considering an investment project that requires an initial investment of $542,000 and returns after-tax cash inflows of $75,000 per year for 10 years. The firm has a maximum acceptable payback period of 8 years.
a. Determine the payback period for this project
b. Should the company accept the project? Why or why not?
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Real Estate Finance And Investments
Authors: William Brueggeman, Jeffrey Fisher
17th Edition
1264072945, 978-1264072941
