Your company is considering a high-risk project that could generate strong income but will involve a significant initial investment. Because of this risk, top management is naturally concerned about how long it is likely to take to pay off that investment before they can start making a profit. This project will require an investment of $200,000 and its five-year revenue projection is: Year 1: $50,000, Year 2: $75,000, Year 3: $125,000, Year 4: $200,000, and Year 5: $250,000. your company's required return is 18%. 

How long will it take to recover your initial investment?

Answer rating: 100% (QA)

To determine the time it will take to recover the initial investment we need to calculate the ... View the full answer