The American Pharmaceutical Company (APC) has a policy that all capital investments must have a four year or less discounted payback period in order to be considered for funding The MARR at APC is 8 per year Is the above project able to meet this benchmark for funding End of Year Cash Flow 0 $275,0...

The project meets the benchmark Year 0 1 2 ...

The American Pharmaceutical Company (APC) has a policy that all capital investments must have a four-year or

Question:

The American Pharmaceutical Company (APC) has a policy that all capital investments must have a four-year or less discounted in order to be considered for funding. The at APC is 8% per year. Is the above project able to meet this benchmark for funding?
End of Year Cash Flow
0 ................................ -$275,000
1 ................................ -$35,000
2 ................................ $55,000
3 ................................ $175,000
4 ................................ $250,000
5 ................................ $350,000
6-10 ........................... $100,000
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other... Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...