Question
Davis Corporation is considering a project which has an up-front cost paid today (at Year 0). The project will generate positive cash flows of $60,000
Davis Corporation is considering a project which has an up-front cost paid today (at Year 0). The project will generate positive cash flows of $60,000 a year at the end of each of the next five years. The project's NPV is $75,000 and the company's cost of capital is 10%. What is the project's payback period?
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Personal Finance
Authors: E. Thomas Garman, Raymond Forgue
8th Edition
0618471421, 9780618471423
