You need to invest $120,0,000 today and will receive $20,000 in year 1, $40,000 in year 2 and $30,000 in year 3

Management Apr 19, 2021

You need to invest $120,0,000 today and will receive $20,000 in year 1, $40,000 in year 2 and $30,000 in year 3. Interest is 8%. Compute Payback Period. Show all work.

Expert Solution

Payback period means the length of time required for an investment to recover its initial outlay. In this case after 3 years there is negative balance. So, here payback period can't be calculated.

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