What is the payback period of this investment

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Reference no: EM132066729

Creative Solutions, Inc., has just invested $4,189,600 in new equipment. The firm uses a payback period criteria of not accepting any project that takes more than four years to recover its costs. Management anticipates cash flows of $782,700, $1,013,000, $1,046,800, $1,203,500, $2,225,900, and $1,704,700 over the next six years. (Round answer to 2 decimal places, e.g. 15.25.)

What is the payback period of this investment?

Payback period is ___________ years.

Should Creative Solutions, Inc. go ahead with this project?

The firm ( should not have been accepted / or / should be accepted) the project.

Reference no: EM132066729

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