Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Payback period The Ball Shoe Company is considering an investment project that requires an initial investment of $578,000 and returns after-tax cash inflows of $102,836 per year for 10 years. The firm has a
maximum acceptable payback period of 8 years.
a. Determine the payback period for this project.
b. Should the company accept the project?
a. The payback period for this project is
years. (Round to two decimal places.)
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Transcribed Image Text:Payback period The Ball Shoe Company is considering an investment project that requires an initial investment of $578,000 and returns after-tax cash inflows of $102,836 per year for 10 years. The firm has a maximum acceptable payback period of 8 years. a. Determine the payback period for this project. b. Should the company accept the project? a. The payback period for this project is years. (Round to two decimal places.)
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