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ABC International has received a proposal from a manager, asking to spend $1,000,000 on equipment that will result in cash inflows in accordance with the
ABC International has received a proposal from a manager, asking to spend $1,000,000 on equipment that will result in cash inflows in accordance with the following table:
YearCash Flow1+$150,0002+180,0003+200,0004+300,0005+400,000
Required:Compute the payback period of the equipment. Would the propoasal of purchasing the equipment be acceptable if the maximum desired payback period is 4 years?
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