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  3. consider the following data on a proposed investme

Consider the following data on a proposed investment: -Investment required: R 160,000 -Annual cash...

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Question

Accounting

Consider the following data on a proposed investment:

-Investment required: R 160,000

-Annual cash inflows: R 40,000

-Life of the investment: 6 years

-Salvage value: 0

Cost of capital: 10%

Based on the above data, what is the payback period of the proposed investment project?

a) 0.25 years

b) 3 years

c) 4 years

d) 5 years

Answer & Explanation Solved by verified expert
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