Your boss is poised to make a $10M investment but wants your advice. He...

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Finance

Your boss is poised to make a $10M investment but wants your advice. He says he is keen for the best available analysis and urges you to provide your thoughts from a payback perspective. Please respond to his request using the information below. Please also provide him with a view of what you think may be the best perspective to use is it payback? Is it another method? If so, what is that other method and what does the analysis using that other method reveal?

Year 0: Invest $10M

Year 1: Receive $2M

Year 2: Receive $3M

Year 3: Receive $6M

Cost of capital: 25%

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