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An investment project generates after-tax cash flows of $5,000 per year for the next 10 years. Suppose the payback period for the project is 5
An investment project generates after-tax cash flows of $5,000 per year for the next 10 years. Suppose the payback period for the project is 5 years and the appropriate discount rate is 15 percent. What is the initial cost of the project?
a. $25,000 b. $32,167 c. $30,000 d. $16,761
Please provide the formula you used and numbers you plugged in to get the answer.
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