Question
Commander bug repellent is considering expanding its current line of business and has developed the following expected cash flows for the project. What is the
Commander bug repellent is considering expanding its current line of business and has developed the following expected cash flows for the project. What is the simple payback period (in years), if the initial cost is $375,000? The company must get all its money back within three years, do you invest ?
| Year | Cash Flow |
| 0 | (375,000) |
| 1 | $ 120,000 |
| 2 | $ 145,000 |
| 3 | $ 100,000 |
| 4 | $ 100,000 |
| 5 | $ 145,000 |
Show work and formula pls
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Financial Management In The Public Sector Tools Applications And Cases
Authors: Xiaohu Wang
2nd Edition
0765625229, 9780765625229
