Question: 12 A company is considering a project that would require an Intial cash outflow in the amount of $225,000 at the beginning of project (1.e.
12
A company is considering a project that would require an Intial cash outflow in the amount of $225,000 at the beginning of project (1.e. t=0). The project has an expected cash inflow in the amount of $40,000 at the end of the first year. The company requires a 13% return on investment. If you were computing the discounted paypack period for the project, what amount would you subtract from the initial cost of $225,000 to find the amount of the intial cost remaining to be recovered at the end of the first year of the project on a discounted basis
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