Question
A capital budgeting opportunity has the following cash flows, net of tax. The companys cost of capital is 14%. T 0 T 1 T 2
A capital budgeting opportunity has the following cash flows, net of tax. The companys cost of capital is 14%.
| T0 | T1 | T2 | T3 | T4 |
| -$200,000 | $50,000 | $50,000 | $90,000 | $90,000 |
What is the projects payback period in years?
Group of answer choices
3.11
3
4
3.76
2.89
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School Finance A Policy Perspective
Authors: Allan Odden, Lawrence Picus
6th Edition
1259922316, 9781259922312
