Question
Consider the following cash flows: Year Cash Flow 0 -$5,000 1 $1,200 2 $2,400 3 $1,600 4 $1,600 5 $1,400 6 $1,200 Payback The company
Consider the following cash flows:
Year Cash Flow
0 -$5,000
1 $1,200
2 $2,400
3 $1,600
4 $1,600
5 $1,400
6 $1,200
Payback The company requires all projects to payback within 3 years. Calculatethe payback period. Should it be accepted or rejected?
Step by Step Solution
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Step: 1
Answer Payback period 288 years The project must be accepted because 288 years is less than ...
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Step: 2
Step: 3
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
