Question
Carla Vista Solutions, Inc., has just invested $3,972,600 in new equipment. The firm uses a payback period criteria of rejecting any project that takes more
Carla Vista Solutions, Inc., has just invested $3,972,600 in new equipment. The firm uses a payback period criteria of rejecting any project that takes more than four years to recover its costs. Management anticipates cash flows of $664,300, $753,500, $1,072,300, $1,375,200, $1,975,200, and $2,462,900 over the next six years. (Round answer to 2 decimal places, e.g. 15.25.)
What is the payback period of this investment? Payback period is _________ years. (for the payback period rounded to 2 decimal places years.)
Should Carla Vista Solutions, Inc. go ahead with this project? The firm (should go ahead with/ should not accept) the project.
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