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 three
For each of the following projects compute (i) pay-back period, (ii) post payback
profitability and (iii) post-back profitability index
- Initial outlay 50,000,000
Annual
Estimated life 8 Years
- Initial outlay 50,000,000
Annual cash inflow (after tax but before depreciation)
First three years Shs .15,000,000
Next five years Shs. 5,000,000
Estimated life 8 Years Salvage Shs. 8,000,000
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