Question
Initial Investment 100,000. Find the payback period of the following problem: Yr Cash Flow 1 10,000-100,000=(90,000) 2 50,000-90,000=(40,000) 3 10,000-40,000=(30,000) 4 10,000-30,000=(20,000) 5 60,000-20,000= 80,000
Initial Investment 100,000. Find the payback period of the following problem:
Yr Cash Flow
1 10,000-100,000=(90,000)
2 50,000-90,000=(40,000)
3 10,000-40,000=(30,000)
4 10,000-30,000=(20,000)
5 60,000-20,000= 80,000
Assume the firm has a maximum acceptable payback period of 3.0 years. Should this projectbe accepted? Why or why not?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
