Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a firm considers an investment whose cost is $ 3 0

A firm considers an investment whose cost is $ 3 000 000 which is paid...

90.2K

Verified Solution

Question

Finance

A firm considers an investment whose cost is $ 3 000 000 which is paid in 2023. The expected cash flows from this investment are as follows: 2024 $ 500 000 2025 $ 700 000 2026 $ 1 000 000 2027 $ 1 000 000 2028 $ 800 000 2029 $ 600 000 The firms desired target payback period is 3 years which means that firm accepts all projects with a payback period less than 3 years. a) Find the exact payback period of this investment on the basis of simple payback period. b) Should the firm accept or reject this investment (give your answer simply as accept or reject)

Note: Notice that I want to see the exact payback period which means you need to use interpolation. See my written notes to understand how the interpolation is done.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Verifica si las ecuaciones diferenciales son exactas, de no serlo calcula el factor integrante. En ambos...

Medical Sciences
1.2K views

Many choice: Which of the following would correct elevated blood sugar in a type 1 diabetic?...

Psychology
1.2K views

In 150 words, explain how Robinson Crusoe found a meaning behind his misfortune of being cast...

Biology
1.2K views

Some people are unable to digest cow's milk because their bodies cannot carry out the...

Biology
1.2K views

Question 7 Points 2 States set up counties and therefore counties administer state law usually...

Basic Math
1.2K views

Use the product-to-sum identities to rewrite the following expression as a sum or difference.4sin (3?/4)...

Algebra
1.2K views

the difference quoti difference quotient

Algebra
1.2K views

6 65 y x 2x 8 2 y 3x 7 65 6x 4y 3z 5...

Accounting
1.2K views

Using T accounts, determine the ending balances in Accounts Receivable and Allowance for Expected...

Accounting
1.2K views

Providing for Doubtful Accounts At the end of the current year, the accounts receivable...

Accounting
1.2K views

Ethics CT7-5 is on page 7-41 of your textbook Blake Romney. After reading the...

Accounting
1.2K views

Required information The following infermation applies to the questions displayed below) Peng Company is considering...