1. Suppose your friend Shamiul works in a textile company and recently they are going to...

 

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1. Suppose your friend Shamiul works in a textile company and recently they are going to buy a new machine for the plant. He is calculating the acceptability of the project. The targeted payback period for the project is 2.5 years. Expected net costs are listed in the following table: Year Cash Flow Tk 185,000 27550 0 1 2 3 4 57320 47750 67340 5 6980 • Calculate the payback period (with timeline) of the project and decide whether he should invest in this project or not. (4) 1. Suppose your friend Shamiul works in a textile company and recently they are going to buy a new machine for the plant. He is calculating the acceptability of the project. The targeted payback period for the project is 2.5 years. Expected net costs are listed in the following table: Year Cash Flow Tk 185,000 27550 0 1 2 3 4 57320 47750 67340 5 6980 • Calculate the payback period (with timeline) of the project and decide whether he should invest in this project or not. (4)

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Initial cash flow to be recovered Tk185000 Year Cash f... View the full answer