3) A project $200,000 requires an initial inve and is expected to gen following net cash inflows: ROJECT A

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...
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3) A project requires an initial investment of
$200,000 and is expected to generate the
following net cash inflows:
PROJECT A
Year 1:60,000
Year 2:60,000
Year 3:80,000
Year 4:30,000
Year 5:30,000
Required: Compute the Pay back Period if the
minimum desired rate of return is 10%.
PVIF 909, .826, .751, .680, .623
Transcribed Image Text:3) A project requires an initial investment of $200,000 and is expected to generate the following net cash inflows: PROJECT A Year 1:60,000 Year 2:60,000 Year 3:80,000 Year 4:30,000 Year 5:30,000 Required: Compute the Pay back Period if the minimum desired rate of return is 10%. PVIF 909, .826, .751, .680, .623
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