A firm wants to start a project. A team of financial analysts estimated the following cash flows year                  cash flow 0                     -$100,000 1                          55,000 2                         43,000 3                         45,000 Based on your calcification of the pay back period and if the cut off point is 2 years, the project should   Group of answer choices Undertake the project Can not decide because we do not have enough information not undertake the project in the short run but undertake the project in the long run Not undertake 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
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A firm wants to start a project. A team of financial analysts estimated the following cash flows

year                  cash flow

0                     -$100,000

1                          55,000

2                         43,000

3                         45,000

Based on your calcification of the pay back period and if the cut off point is 2 years, the project should

 

Group of answer choices
Undertake the project
Can not decide because we do not have enough information
not undertake the project in the short run but undertake the project in the long run
Not undertake the project
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