Consider the Following 10-year project: Year Cash Flow 0 -30000 1 2500 2 5000 3 6750 4 7000 5 7250 6 6000 7 6250 8 8000 9 3750 10 2000 What is the Payback Period for the project? Would you accept this project if the cut-off is 5 years?
Consider the Following 10-year project: Year Cash Flow 0 -30000 1 2500 2 5000 3 6750 4 7000 5 7250 6 6000 7 6250 8 8000 9 3750 10 2000 What is the Payback Period for the project? Would you accept this project if the cut-off is 5 years?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
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Consider the Following 10-year project: |
||
|
Year |
Cash Flow |
|
|
0 |
-30000 |
|
|
1 |
2500 |
|
|
2 |
5000 |
|
|
3 |
6750 |
|
|
4 |
7000 |
|
|
5 |
7250 |
|
|
6 |
6000 |
|
|
7 |
6250 |
|
|
8 |
8000 |
|
|
9 |
3750 |
|
|
10 |
2000 |
|
- What is the Payback Period for the project? Would you accept this project if the cut-off is 5 years?
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