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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. |
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