Question
A Company is looking at a project requiring a $125,000 investment which, in turn, will generate the following cash flows: year-1 $40,000; year-2 $45,000; year-3
A Company is looking at a project requiring a $125,000 investment which, in turn, will generate the following cash flows: year-1 $40,000; year-2 $45,000; year-3 $55,000; year-4 $65,000. The firm's cost of capital is 12%. What is the payback period or this project?
Group of answer choices
A.The project does not payback
B.2.73
C.3.73
D.4.35
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Basic Finance An Introduction to Financial Institutions Investments and Management
Authors: Herbert B. Mayo
10th edition
1111820635, 978-1111820633
