Pendleton Products has a project requiring an initial cash investment of $3,100. The project is expected...
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Pendleton Products has a project requiring an initial cash investment of $3,100. The project is expected to return $1,200 each period for the next 5 periods, and it has a discount rate of 7%. 1. Determine how long it will take, if at all, for the project to have a positive payback. Present value formula: Present value = Cash received (1 + r) F where r = rate and p = # of periods. Pendleton Products has a project requiring an initial cash investment of $3,100. The project is expected to return $1,200 each period for the next 5 periods, and it has a discount rate of 7%. 1. Determine how long it will take, if at all, for the project to have a positive payback. Present value formula: Present value = Cash received (1 + r) F where r = rate and p = # of periods.
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