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Question 67 3 pts The Dammon Corporation is evaluating the following investment opportunities. Each investment requires and initial cash outflow (or cost) of $10,000. The
Question 67 3 pts The Dammon Corporation is evaluating the following investment opportunities. Each investment requires and initial cash outflow (or cost) of $10,000. The firm's weighted average cost of capital is 10%. The investments offer the following annual cash inflows: Periods Investment A Investment B $4,000 $5,000 1,000 5,000 3,000 3,000 5,000 3,000 Compute the payback period (PB) for Investment A. Pay Back = the number of years it takes to get your initial investment back 2 years 4 years 1 year 3.4 years
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