3) A project $200,000 requires an initial inve and is expected to gen following net cash inflows: ROJECT A

Financial And Managerial Accounting
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ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
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3) A project requires an initial investment of
$200,000 and is expected to generate the
following net cash inflows:
PROJECT A
Year 1:60,000
Year 2:60,000
Year 3:80,000
Year 4:30,000
Year 5:30,000
Required: Compute the Pay back Period if the
minimum desired rate of return is 10%.
PVIF 909, .826, .751, .680, .623
Transcribed Image Text:3) A project requires an initial investment of $200,000 and is expected to generate the following net cash inflows: PROJECT A Year 1:60,000 Year 2:60,000 Year 3:80,000 Year 4:30,000 Year 5:30,000 Required: Compute the Pay back Period if the minimum desired rate of return is 10%. PVIF 909, .826, .751, .680, .623
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