The investment will result in additional cash flows

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Reference no: EM131050413

Payback is in 2.94 years. Warrior Industries is getting ready to produce a car component by investing $2,700,000. The investment will result in additional cash flows of $600,000, $785,000 and $1,400,000 over the next three years. (hint: Payback is in 2.94 years)

A. After 3 years, the initial investment has not been paid back.

B. The project should be rejected if the required payback period is 2.6 years.

C. The project should be accepted if the required payback period is 2.6 years.

D. The project should be accepted if the required payback period is 2.8 years.

Reference no: EM131050413

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