Question
KTS is trying to estimate the first-year operating cash flow. The financial staff has given Dante the following information: Incremental revenue = $9 Depreciation =
KTS is trying to estimate the first-year operating cash flow. The financial staff has given Dante the following information:
| Incremental revenue = $9 |
| Depreciation = $3 |
| Interest Expense = $1 |
| Marginal tax rate = 50% |
Consider the following series of cash flows:
| Cash Flow: | -50 | 20 | 10 | 10 | 20 | 20 |
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
What is the payback period?
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Financial Management Theory And Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
3rd Canadian Edition
017658305X, 978-0176583057
