Cranium, Inc. is considering a fouryear project that has an initial outlay or cost of...
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Finance
Cranium, Inc. is considering a
fouryear
project that has an initial outlay or cost of $100,000. The respective future cash inflows from its project for years 1, 2, 3 and 4 are: $50,000, $40,000, $30,000 and $20,000. Will it accept the project if it's required payback period is 26 months?
A.
Yes, because it pays back in 25 months.
B.
No, because it pays back in over 35 months.
C.
No, because it pays back in 32 months.
D.
No, because it pays back in 28 months.
E.
No, because it pays back in over 31 months.
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