Question
Solve the payback period in this problem. Your company plans to invest in a project that has a $5000 initial outlay. It is estimated that
Solve the payback period in this problem. Your company plans to invest in a project that has a $5000 initial outlay. It is estimated that the project will provide regular cash inflows of 1500 in year 1, 2000 in year 2, 800 in year 3, 350 in year 4, and 700 in year 5. If a company has a target payback of 4 years, do you recommend that this project be accepted?
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
