A project which cost you $150,000 to implement, promises to produce the following cash-flows over its 5 years period: Year 1 : 40,000 Year 2 : $30,000 Year 3 : $20,000 Year 4 : $50,000 Year 5: $80,000 If investors expect 15% p.a as their required rate of return, if this project is profitable to invest? What is the payback peirod for this project?
A project which cost you $150,000 to implement, promises to produce the following cash-flows over its 5 years period: Year 1 : 40,000 Year 2 : $30,000 Year 3 : $20,000 Year 4 : $50,000 Year 5: $80,000 If investors expect 15% p.a as their required rate of return, if this project is profitable to invest? What is the payback peirod for this 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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A project which cost you $150,000 to implement, promises to
produce the following cash-flows over its 5 years period:
Year 1 : 40,000
Year 2 : $30,000
Year 3 : $20,000
Year 4 : $50,000
Year 5: $80,000
If investors expect 15% p.a as their required
project is profitable to invest? What is the payback peirod for this project?
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