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An investment of $250,500 is expected to generate the following cash inflows during the next 6 years. Years Cash Inflows ($) 1 70,000 2 85,000

An investment of $250,500 is expected to generate the following cash inflows during the next 6 years.

Years

Cash Inflows ($)

1

70,000

2

85,000

3

55,525

4

72,890

5

65,250

6

78,990

Decide whether the investment should done, taking into consideration the management expectation to recover the initial investment in 3 years or less. Use the payback period method in order to support your decision.

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