What is project payback period

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Reference no: EM132015028

1. An investment project provides cash inflows of $425 per year for eight years. What is the project payback period if the initial cost is $2376? (Enter 0 if the project never pays back. Round your answer to 2 decimal places. (e.g., 32.16)).

2. You have a chance to make a $140,000 one-year investment. The investment is expected to earn 15%, and there are no taxes. If you borrow $90,000 at 9% and put up the other $50,000 with your own money, what will be your expected return on the $50,000?

Reference no: EM132015028

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