Question
A project will cost $20,000 in total investment. The cash flows are as follows: Year 1: $5,000 Year 2: $3,000 Year 3: $6,000 Year 4:
A project will cost $20,000 in total investment. The cash flows are as follows: Year 1: $5,000 Year 2: $3,000 Year 3: $6,000 Year 4: $8,000 Year 5: $7,000. Assume the cash flows are distributed evenly throughout the year. Calculate the exact payback period.
| A. | 3 years |
| B. | 3.40 years |
| C. | 4 years |
| D. | 3.75 years |
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Inside Private Equity
Authors: James M. Kocis, James C. Bachman IV, Austin M. Long III, Craig J. Nickels
1st Edition
0470421894, 978-0470421895
