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Suppose a company has proposed a new 4-year project. The project has an initial outlay of $47,000 and has expected cash flows of $19,000 in
Suppose a company has proposed a new 4-year project. The project has an initial outlay of $47,000 and has expected cash flows of $19,000 in year 1, $22,000 in year 2, $26,000 in year 3, and $32,000 in year 4. The required rate of return is 12% for projects at this company. What is the Payback for this project? (Answer to the nearest tenth of a year, e.g. 1.2)
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