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Please include formulas Commander bug repellent is considering expanding its current line of business and has developed the following expected cash flows for the project.
Please include formulas
Commander bug repellent is considering expanding its current line of business and has developed the following expected cash flows for the project. What is the simple payback period (in years), if the initial cost is $375,000? The company must get all its money back within three years, do you invest ? | ||||||||
Year | Cash Flow | |||||||
0 | (375,000) | |||||||
1 | $ 120,000 | |||||||
2 | $ 145,000 | |||||||
3 | $ 100,000 | |||||||
4 | $ 100,000 | |||||||
5 | $ 145,000 |
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