A project manager is using the payback method to make the final decision on which project to
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A project manager is using the payback method to make the final decision on which project to undertake. The company has a 10% required rate of return and expects a 4% rate of inflation for the following five years. The initial investment cost of the project was $500,000. What is the payback period of a project that has cash flows as shown in the table:
year 1= $50,000,
year 2 =$75,000,
year 3 =$150,000,
year 4 =$150,000,
year 5=$750,000?.
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
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