maxwell trostar
New member
- Joined
- Jan 7, 2021
- Messages
- 1
the owners of a company which manufacture plastic are considering of investing in a new production plant which requires an initial cost of 12,000,000. the associated revenues from the project for a five years period are estimated to be 6,000,000, 4,500,000, 2,500,000, 1,800,000, and 140,000,000 respectively
required
a) advice whether the owners of the company should invest in this project if the value of money is at 15%
b) the company policy says that it should only invest in a project only when it recovers its initial in investment in 4 years. calculate the payback period for the investment and advise accordingly
required
a) advice whether the owners of the company should invest in this project if the value of money is at 15%
b) the company policy says that it should only invest in a project only when it recovers its initial in investment in 4 years. calculate the payback period for the investment and advise accordingly