Question
Year Cash Flows 0 $-2,000,000 1 $ 150,000 2 $1,200,000 3 $ 200,000 4 $ 250,000 5 0- 6 $ 625,000 7 $ 175,000 Additional
Year Cash Flows 0 $-2,000,000 1 $ 150,000 2 $1,200,000 3 $ 200,000 4 $ 250,000 5 0- 6 $ 625,000 7 $ 175,000
Additional information: SunBeam generally requires a 6 year payback for a project to be undertaken, and SunBeam requires at least a return of 12% for an investment to be undertaken. Required: 2. Should SunBeam undertake this project? Why or why not?
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GAO Financial Audit Manual Volume 3 June 2018
Authors: United States Government GAO
2018 Edition
979-8733166001
