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Investment Scenario: Initial investment: $120,000 Cash inflows: oYear 1: $20,000 oYear 2: $25,000 oYear 3: $35,000 oYear 4: $45,000 oYear 5: $55,000 Tasks: 1.Calculate the

Investment Scenario:

•Initial investment: $120,000

•Cash inflows:

oYear 1: $20,000

oYear 2: $25,000

oYear 3: $35,000

oYear 4: $45,000

oYear 5: $55,000

Tasks:

1.Calculate the payback period.

2.Determine the cumulative cash flow at the end of year 2.

3.Identify the surplus cash flow after payback.


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