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5. Investment Appraisal Jam Transport Ltd, is a public transporting entity which operates in the Kingston Metropolitan Area it is considering a project which will
5. Investment Appraisal Jam Transport Ltd, is a public transporting entity which operates in the Kingston Metropolitan Area it is considering a project which will require purchasing two additional buses. This investment will cost the company $125 million and it is expected to generate $30 million per year for the next 5 years a. Calculate the Payback Period(10 marks) b. Indicate to Jam Transport Ltd. the degree to which the usage of Payback period is a suitable method of making an investment decision (15 marks)
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