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Paula is planning to buy a Coffee Shop for $100,000 today. In return, Paula is expecting the following cashflows: Year1: $7,188; Year2: $21,562; Year3: $40,250;
| Paula is planning to buy a Coffee Shop for $100,000 today. |
| In return, Paula is expecting the following cashflows: |
| Year1: $7,188; Year2: $21,562; Year3: $40,250; Year4: $50,315; Year5: $57,500 |
| Paula can borrow from a bank at a rate of 8.00% to buy the Coffee Shop |
| How much is the payback period, in years, of this project? |
| Enter your answer in the following format: 1.23; Hint: Answer is between 3.33 and 3.94 |
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Finance For Managers
Authors: Harvard Business School Press
1st Edition
1578518768, 978-1578518760
