Question

Assuming cash flows in a year are divisible, what is the payback on the following project?...

Assuming cash flows in a year are divisible, what is the payback on the following project? Would
you accept the project if your required payback is 3 years? 4 years? Explain.

year

0

1

2

3

4

5

description

Project Cost

Cash Inflow

Cash Inflow

Cash Inflow

Cash Inflow

Cash Inflow

Cash flows

-300,000

77,000

83,000

88,000

92,000

96,000

Do not use Excel!

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