1/ Smart company invests 10,000 $ in development Project (B) and expect to generate net cash inflows each year as following: Years Project B 10,000 5,000 2,500 4,000 1,000 1 4 Calculate the payback period for the project?

1/ Smart company invests 10,000 $ in development Project (B) and expect to generate net cash inflows each year as following: Years Project B 10,000 5,000 2,500 4,000 1,000 1 4 Calculate the payback period for the project?

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

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Question

1/ Smart company invests 10,000 $ in development Project (B) and expect to generate
net cash inflows each year as following:
Years
Project B
10,000
5,000
1
2,500
4,000
1,000
3
4.
Calculate the payback period for the project?

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