You are evaluating a project that will cost

$546,000,

but is expected to produce cash flows of

$121,000

per year for

10

years, with the first cash flow in one year. Your cost of capital is

11%

and your company's preferred payback period is three years or less.

a. What is the payback period of this project?

b. Should you take the project if you want to increase the value of the company?

a. What is the payback period of this project?

The payback period is

nothing

years.(Round to two decimal places.)

b. Should you take the project if you want to increase the value of the company?(Select from the drop-down menus.)

If you want to increase the value of the company you

will notwill not

willwill

take the project since the NPV is

positive

negative

.

o You are evaluating project that wil.com 46.000, but is expected to produce cash flow $121.000 per year for 10 years, with the first cash low in one you. Your cost of 115 and your company's preferred by periods years or less What is the payback period of the b. Should you in the project you want to increase the who the company! What is the back period of time? The payback period is year. (Round to we decimal places) Should you take the project if you want to increase the value of the company (Select from the drop down) you want to increase the value of the company you take the project since the NPV