Author Question: A firm is evaluating a proposal which has an initial investment of 50,000 and has cash flows of ... (Read 88 times)

formula1 · **on:** Jul 10, 2018

A firm is evaluating a proposal which has an initial investment of 50,000 and has cash flows of 15,000 per year for five years. The payback period of the project is ________.

A) 1.5 years
B) 2 years
C) 3.3 years
D) 4 years

Question 2

How long would it take for you to save an adequate amount for retirement if you deposit 40,000 per year into an account beginning today that pays 12 percent per year if you wish to have a total of 1,000,000 at retirement?

A) 12.2 years
B) 10.5 years
C) 14.8 years
D) 11.5 years