Question
Builtrite has estimated their cost of capital is 14% and they are considering the purchase of a machine with the following capital budget: Initial Investment
Builtrite has estimated their cost of capital is 14% and they are considering the purchase of a machine with the following capital budget:
| Initial Investment | $62,000 |
| RATFCF Year 1 | $38,000 |
| RATFCF Year 2 | $30,000 |
| RATFCF Year 3 | $24,000 |
What is the machines payback period?
| 1.2 years | ||
| 2.21 years | ||
| 2.79 years | ||
| 1.8 years |
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Advances In Financial Machine Learning
Authors: Marcos Lopez De Prado
1st Edition
1119482089, 978-1119482086
