Question
The expected profits from a $52,000 investment are $8,000 in Year 1, $12,000 in each of Years 2 to 5, and $6,000 in each of
The expected profits from a $52,000 investment are $8,000 in Year 1, $12,000 in each of Years 2 to 5, and $6,000 in each of years 6 and 7.
(a) What is the investments payback period?
(b) If the firms required payback period is four years, will it make the investment?
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
8th Edition
0357714636, 9780357714638
