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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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