The total investment required for a project is estimated at OMR100, 000. The cash flows expected from project for the first four years are given below Year Project A Year 1 25,000 Year 2 38,500 Year 3 42,000 Year 4 48,000 What will be pay back period? a. 2.86 b. 3.23 C. 3.03 d. 2.63 e. All the options are wrong

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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The total investment required for a project is estimated at OMR100, 000. The cash flows expected from project
for the first four years are given below
Year Project A
Year 1 25,000
Year 2 38,500
Year 3 42,000
Year 4 48,000
What will be pay back period?
a.
2.86
b. 3.23
3.03
d. 2.63
Oe.
All the options are wrong
rch
denovo
近
Transcribed Image Text:The total investment required for a project is estimated at OMR100, 000. The cash flows expected from project for the first four years are given below Year Project A Year 1 25,000 Year 2 38,500 Year 3 42,000 Year 4 48,000 What will be pay back period? a. 2.86 b. 3.23 3.03 d. 2.63 Oe. All the options are wrong rch denovo 近
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