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Payback Period and ARR (with uneven cash flows) The Templar Company has an investment opportunity costing P90,000 that is expected to yield the following cash
Payback Period and ARR (with uneven cash flows)
The Templar Company has an investment opportunity costing P90,000 that is expected to yield the following cash
flows over the next five years: (assume a cut-off rate of 25%)
Year 1 - P40,000; Year 2 - P35,000; Year 3- P30,000; Year 4 - P20,000; Year 5 - P10,000; total - P135,000.
Required:
a. Payback period in months.
b. Book rate of return on investment.
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