Question
Assume a project has the following expected cash flows: Year Expected Net Cash Flow 0 ($400,000) 1 100,000 2 100,000 3 200,000 4 250,000 4.
Assume a project has the following expected cash flows:
Year Expected Net Cash Flow
0 ($400,000)
1 100,000
2 100,000
3 200,000
4 250,000
4. What is the projects payback (payback period)? 400,000/250,000
a. 2.00 years
b. 2.25 years
c. 2.50 years
d. 2.75 years
*e. 3.15 years
Explanation:
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
12th Edition
0136096689, 978-0136096689
