Out of 100 applications received, three contractors did meet the requirements to bid for the Intensification and Densification of housing tender in Wynberg. You are tasked with choosing a contract for this tender. You have been given the cash flows of three contractors, and you choose to use the Payback Period decision model to select the best project.

project initial cost is r35 000 000

year 0 =(r35 000 000)

year 1 = r15 000 000

year 2 = r15 00 000

year 3 = r5 000 000

year 4 = r4 000 000

year 5 = r2 000 000

calculate the payback period 

Answer rating: 100% (QA)

Solution To calculate the payback period we need to calculate the time it takes for the project to g... View the full answer