How long will it take them to recoup the initial outlay

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Q1. Joy Garden in Newark is considering a fall promotion that will cost $2,875. They expect incremental cash flows to be: Year 1: $1,300, Year 2: $1,000, Year 3: $800, Year 4: $$600. How long will it take them to recoup the initial outlay? 

Q2. A digital marketing project will provide $830 monthly to Potstickers Asian Fusion Restaurant for 5 years. If the initial outlay is $20,400, a) what is the payback period for this project? b) Should they go ahead with the project if the company's desired payback is 3.5 years and the initial outlay is $27,850?

Reference no: EM132967662

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