You are considering an investment with the following cash flows. Your required return is 8%,...
60.1K
Verified Solution
Link Copied!
Question
Finance
You are considering an investment with the following cash flows. Your required return is 8%, you require a payback of 3 years and a discounted payback of 4 years. If your objective is to maximize your wealth, should you take this investment? Year 0 1 2 3 4 5 Cash Flow $50,000 $20,000 $20,000 $20,000 $20,000 $50,000
| Yes, because the payback is 2.5 years. | ||
| Yes, because the discounted payback is less than 4 years. | ||
| Yes, because both the payback and the discounted payback are less than 2 years. | ||
| No, because the NPV is negative. | ||
| No, because the project cash flows are not conventional. |
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.