calculate the payback period and indicate whether you would invest in the project with a four year maximum allowable payback period.

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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For the following stream of free cash flows, calculate the payback period and indicate whether you would invest in the project with a four year maximum allowable payback period.

Year 0 1 2 3 4 5
Free Cash Flows -45,452 10,005 14,921 12,537 10,452 21,455
Group of answer choices
3.8 years; Invest
3.8 years; Do not invest
4.8 years; Invest
4.8 years; Do not invest
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