Question
Assuming cash flows in a year are divisible, what is the payback on the following project? Would you accept the project if your required payback
Assuming cash flows in a year are divisible, what is the payback on the following project? Would you accept the project if your required payback is 3 years? 4 years? Explain.
| year | 0 | 1 | 2 | 3 | 4 | 5 |
| description | Project Cost | Cash Inflow | Cash Inflow | Cash Inflow | Cash Inflow | Cash Inflow |
| Cash flows | -300,000 | 77,000 | 83,000 | 88,000 | 92,000 | 96,000 |
Do not use Excel!
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Introduction To Financial Management
Authors: Sudanshu Pandeya
1st Edition
1774695316, 978-1774695319
