Solution-Calculate cumulative cash inflows on a

Calculate cumulative cash inflows on a year-to-year basis

Reference no: EM133042718

Question - Long-term investment decision, payback method Personal - Finance Problem Bill Williams has the opportunity to invest in project A that costs $8,200 today and promises to pay $2,100, $2,400, $2,400, $2,000 and $1,700 over the next 5 years. Or, Bill can invest $8,200 in project B that promises to pay $1,400, $1,400, $1,400, S3,500 and $3,900 over the next 5 years.

a. For mixed stream cash inflows, calculate cumulative cash inflows on a year-to-year basis until the initial investment is recovered.

b. How long will it take for Bill to recoup his initial investment in project B?

Reference no: EM133042718

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Calculate cumulative cash inflows on a year-to-year basis

Reference no: EM133042718

Reference no: EM133042718

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