Question
Year Cash Flow 0 -110000 1 30000 2 40000 3 20000 4 30000 5 20000 6 20000 Given the cash flows in the table above,
Year Cash Flow
0 -110000
1 30000
2 40000
3 20000
4 30000
5 20000
6 20000
Given the cash flows in the table above, calculate the payback period assuming the cash flows in years 1 to 4 occur evenly throughout the year. The required rate of return is 12%.
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Derivatives Markets
Authors: Robert L. McDonald
2nd Edition
032128030X, 978-0321280305
