Creative Solutions, Inc., has just invested $4,615,300 in new equipment. The firm uses the payback period criteria of not accepting any project that takes more than four years to recover its costs. The company anticipates cash flows of $644,386, $812,178, $943,279, $1,364,997, $2,616,300, and $2,225,375 over the next six years.

Does this investment meet the firm's payback criteria?

Answer rating: 100% (QA)

initial cost 4615300 Sum of cash flow of four years 64... View the full answer