Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are considering an investment which has the following cash flows. If you require a 5 year payback, should you take the investment? Year 0

You are considering an investment which has the following cash flows. If you require a 5 year payback, should you take the investment?

Year 0 1 2 3 4 5 6

Cash flow -30000 10000 5000 5000 7500 10000 20000

1.

Yes, the payback is 3.00 years.

2.

Yes, the payback is 3.75 years.

3.

Yes, the payback is 4.25 years.

4.

No, the payback is 5.25 years.

5.

No, the payback is 5.75 years.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Short Term Financial Management

Authors: Terry S. Maness, John T. Zietlow

3rd Edition

0324202938, 978-0324202939

More Books

Students also viewed these Finance questions

Question

What does stickiest refer to in regard to social media

Answered: 1 week ago