Answered: Company Rapid Growth is considering the…

Company Rapid Growth is considering the following project: Year 0 1 2 3 4 5 Cash Flows -$89700 $10300 $25800 $33600 $38300 $56300 What's the payback period of 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

Company Rapid Growth is considering the following project:

Year	0	1	2	3	4	5
Cash Flows	-$89700	$10300	$25800	$33600	$38300	$56300

What's the payback period of the project?

Expert Solution

Step 1

Given:

Year	Cash flow
0	-$89,700
1	$10,300
2	$25,800
3	$33,600
4	$38,300
5	$56,300

Step by step

Solved in 2 steps with 2 images

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