Consider the following cash flows:
Year                    Cash Flow 

0                           -$5,000 

1                            $1,200 

2                            $2,400 

3                            $1,600 

4                            $1,600 

5                            $1,400 

6                            $1,200 

Payback The company requires all projects to payback within 3 years. Calculatethe payback period. Should it be accepted or rejected?

Answer rating: 100% (QA)

Answer Payback period 288 years The project must be accepted because 288 years is less than ... View the full answer