Question
Consider an investment of $150,000 that will generate the following cash flows: Year1: $20,000 Year 2: $35,000 Year 3: $60,000 Year 4: $75,000 Year 5:
Consider an investment of $150,000 that will generate the following cash flows:
Year1: $20,000
Year 2: $35,000
Year 3: $60,000
Year 4: $75,000
Year 5: $45,000.
The firms cost of capital is 8% and it requires a discounted payback period of 4.1 years. What is the discounted payback of this investment opportunity, and will the firm accept or reject it?
| C. 3.9 years - Reject | ||
| B. 4.0 years - Reject | ||
| A. 4.0 years - Accept | ||
| D. 3.9 years - Accept |
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The Essential Nonprofit Fundraising Handbook
Authors: Michael A. Sand, Linda Lysakowski
1st Edition
1601630727, 978-1601630728
