Percy has been asked by his manager to perform an analysis of two particular business ventures. Zeus Electronics, will cost $400,000 today and another $100,000 in one years’ time, after which the project is expected to generate income of $100,000 every year. Percy knows that his company’s required rate of return for such projects is 10% per annum effective. 

Calculate the Pay Back Period (PBP) for Zeus Electronics.

Answer rating: 100% (QA)

To calculate the Pay Back Period PBP for Zeus Electronics we need to determine the number of years i... View the full answer