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You have an opportunity to invest $150,000 now in return for $80,000 in one year, $40,000 in two years, $20,000 in three years, and $30,000
You have an opportunity to invest $150,000 now in return for $80,000 in one year, $40,000 in two years, $20,000 in three years, and $30,000 in four years. If your cost of capital is 7%, what is the pay back period of this investment? Are you going to accept the project? Assume the payback rule is 3 year
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