Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cranium, Inc. is considering a four-year project that has an initial outlay or cost of $100,000. The respective future cash inflows from its project for

Cranium, Inc. is considering a four-year project that has an initial outlay or cost of $100,000. The respective future cash inflows from its project for years 1, 2, 3 and 4 are: $50,000, $40,000, $30,000 and $20,000. Will it accept the project if it's payback period is 26 months?

No, because it pays back in over 35 months.

No, because it pays back in over 31 months.

No, because it pays back in 28 months.

Yes, because it pays back in 25 months.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Finance In Construction

Authors: Tony Merna, Yang Chu, Faisal F. Al-Thani

1st Edition

ISBN: 1444334778, 978-1444334777

More Books

Students also viewed these Finance questions

Question

Does it avoid use of underlining?

Answered: 1 week ago