Your firm has the opportunity to invest $75,000 in a new project opportunity but due to cash

Question:

Your firm has the opportunity to invest $75,000 in a new project opportunity but due to cash flow concerns, your boss wants to know when you can pay back the original investment. Using the discounted payback method, you determine that the project should generate inflows of $30,000, $30,000, $25,000, $20,000, and $20,000 respectively for an expected five years after completion of the project. Your firm’s required rate of return is 10%.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question
Question Posted: