Oriole Inc. is contemplating a capital investment of $108000. The cash flows over the project's four years are: Expected Expected Annual Annual Cash Year Cash Inflows Outflows 1 $38000 $16000 61000 25000 75000 30000 4 50000 40000
Oriole Inc. is contemplating a capital investment of $108000. The cash flows over the project's four years are: Expected Expected Annual Annual Cash Year Cash Inflows Outflows 1 $38000 $16000 61000 25000 75000 30000 4 50000 40000
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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Transcribed Image Text:Oriole Inc. is contemplating a capital investment of $108000. The cash flows over the project's four years are:
Expected
Expected
Annual
Annual
Cash Inflows
Cash
Outflows
Year
1
$38000
$16000
2
61000
25000
3
75000
30000
50000
40000
The cash payback period is
O 3.50 years.
O 2.20 years.
О 3.12 years.
O 3.56 years.
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