Please use the payback method to analyze the project whose cash flows are provided below. The cost of the project is $525,000. The company requires payback within 4 years. Should the company accept the project? What is the payback period? Year Cash flows 1 $135,000 2 $152,000 3 $168,000 4 $195,000 5 $212,000 Accept the project because the payback period is 4 years Reject the project because the payback period is 4 years Reject the project because the payback period is 3.36 years not enough information is provided to determine the payback period accept the project because the payback period is 3.36 years.
Please use the payback method to analyze the project whose cash flows are provided below. The cost of the project is $525,000. The company requires payback within 4 years. Should the company accept the project? What is the payback period? Year Cash flows 1 $135,000 2 $152,000 3 $168,000 4 $195,000 5 $212,000 Accept the project because the payback period is 4 years Reject the project because the payback period is 4 years Reject the project because the payback period is 3.36 years not enough information is provided to determine the payback period accept the project because the payback period is 3.36 years.
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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Please use the payback method to analyze the project whose cash flows are provided below. The cost of the project is $525,000. The company requires payback within 4 years. Should the company accept the project? What is the payback period?
Year Cash flows
1 $135,000
2 $152,000
3 $168,000
4 $195,000
5 $212,000
Accept the project because the payback period is 4 years
Reject the project because the payback period is 4 years
Reject the project because the payback period is 3.36 years
not enough information is provided to determine the payback period
accept the project because the payback period is 3.36 years.
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