A company is considering investing in a new project that requires an initial investment of $100,000. The
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A company is considering investing in a new project that requires an initial investment of $100,000. The project is expected to generate annual cash flows of $25,000 for the next 5 years. The company uses a discount rate of 10% to evaluate investment opportunities. Calculate the Payback Period (PB) of the investment and determine whether it should be accepted or rejected.
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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