Question
Percy has been asked by his manager to perform an analysis of two particular business ventures. Zeus Electronics, will cost $400,000 today and another $100,000
Percy has been asked by his manager to perform an analysis of two particular business ventures. Zeus Electronics, will cost $400,000 today and another $100,000 in one years’ time, after which the project is expected to generate income of $100,000 every year. Percy knows that his company’s required rate of return for such projects is 10% per annum effective.
Calculate the Pay Back Period (PBP) for Zeus Electronics.
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
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