Question
A company is considering a project that would require an intial cash outflow in the amount of $125,000 at the beginning of project (i.e. t=0).
A company is considering a project that would require an intial cash outflow in the amount of $125,000 at the beginning of project (i.e. t=0). The project has an expected cash inflow in the amount of $30,000 at the end of the first year. The company requires a 11% return on investment. If you were computing the discounted paypack period for the project, what amount would you subtract from the initial cost of $125,000 to find the amount of the intial cost remaining to be recovered at the end of the first year of the project on a discounted basis?
Do not round intermediate calculations. Round final answer to two decimal places.
Please show all your work and show your steps. Clearly explain your answer and the steps you take. If writing, please write neatly, no cursive, and write in a linear fashion.
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