Question
Company ABC is considering investing in a new project with the following cash flows: Initial Investment: $300,000 Year 1: $80,000 Year 2: $100,000 Year 3:
Company ABC is considering investing in a new project with the following cash flows:
- Initial Investment: $300,000
- Year 1: $80,000
- Year 2: $100,000
- Year 3: $120,000
- Year 4: $140,000
- Year 5: $160,000
Calculate the payback period for the investment and assess its attractiveness based on this criterion.
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
