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Company ABC Ltd is planning to make an investment in a project of manufacturing tires. The initial investment of the project is $180,000. The cash
Company ABC Ltd is planning to make an investment in a project of manufacturing tires. The initial investment of the project is $180,000. The cash flows generated from the project are as follows: Year Cash flows 1 $75,000 2. $50,000 3 $45,000 4 $25,000 5 $15,000 Determine the payback period of the project. Answer choices: a. 3 years b. 3.4 years c. 0.4 years d. 2.6 years
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