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Zeta Gaming company has an opportunity to purchase a video game phone app that will cost $150,000. Zeta expects the demand for the app to
Zeta Gaming company has an opportunity to purchase a video game phone app that will cost $150,000. Zeta expects the demand for the app to start strong but to diminish as people tire of the game. The expected cash inflows are as follows:
Year 1 -$60,000
Year 2 - 50,000
Year 3 - 40,000
Year 4 - 30,000
Year 5 - 20,000
if Zeta uses the cumulative approach the payback period for this investment is
2years
3years
3.75 years
4.25 years
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