Pocus Co. is considering a four-year project that has an initial outlay or cost of RM100,000. The respective future cash inflows from its project for years 1, 2, 3 and 4 are: RM50,000, RM40,000, RM30,000 and RM20,000. Will it accept the project if it's payback period is 26 months?

Answer rating: 100% (QA)

To determine whether Pocus Co will accept the project based on the payback period lets first calcula... View the full answer