Question
Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $11,000, $11,000, $14,000, $14,000, and $14,000, respectively.
Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $11,000, $11,000, $14,000, $14,000, and $14,000, respectively.
What is the payback period? (Enter your answer rounded to 2 DECIMAL PLACES)
If the firm accepts projects with payback periods 3 years or less, will this project be accepted?
Yes or No?
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Probability For Risk Management
Authors: Matthew J. Hassett, Donald G. Stewart
2nd Edition
156698548X, 978-1566985482
