The annual cash flows of a potential project are tabulated below: Year Annual cash flows Year 1 3.500 Year 2 3.900 Year 3 3.350 Year 4 2.750 Year 5 3.000

The cost of the project is 15.000 (required to be paid in the beginning). The project is expected to have 5 years useful life. There is not any salvage value. Acceptable payback period for the project is 4 years and 3 months. Using this information, you are required to evaluate the project with Simple payback evaluation technique (Assuming two decimal points). Should a company run this project?

The annual cash flows of a potential project are tabulated below: Year Annual cash flows Year 1 3.500 Year 2 3.900 Year 3 3.350 Year 4 2.750 Year 5 3.000