Question: Q)based on the payback period criterion what is the minimum cash flow that must be received at the end of year three to make the

Q)based on the payback period criterion what is the minimum cash flow that must be received at the end of year three to make the following project acceptable. initial cost 100000, cash flow at end of year one and two 35000; the opportunity cost of capital =10%

should the project be accepted if the cash flow in year three indeed is same as the minimum cash flow you calculated above?

a) 54494; YES NPV is positive

b) $45526,NO NPV is negative

c) $30,000, No NPV is Negative

d) $52250, Yes NPV is positive

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