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Exercise: Madina Corporation is evaluating a business proposal that has the following projections. Required capital GH20,000 Required rate of return / cost of capital 11%

Exercise: Madina Corporation is evaluating a business proposal that has the following projections. Required capital GH20,000 Required rate of return / cost of capital 11% Estimated recovery period and yearly net cash inflows are Years: 0 1 2 3 4 5 Cash flows (GH) (20,000) 9,000 8,000 7,000 7,000 10,000 Required Calculate the payback period and comment on it. Calculate the discounted payback period and comment on it

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