Question
You are given the following information for a potential capital budgeting project: The initial investment is $500. The life of the project is 3 years
You are given the following information for a potential capital budgeting project: The initial investment is $500. The life of the project is 3 years with the following cash flows during years 1, 2 and 3, respectively: $350, $100 and $250. The WACC is 12%. What is the Payback Period for this project?
| A. | Between the 1st and 2nd year | |
| B. | Between the 2nd and 3rd year | |
| C. | 4 years | |
| D. | 2 years |
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Private Equity Value Creation Analysis Volume I
Authors: Michael David Reinard
1st Edition
1736077821, 978-1736077825
