The American Pharmaceutical Company (APC) has a policy that all capital investme
ID: 2615285 • Letter: T
Question
The American Pharmaceutical Company (APC) has a policy that all capital investments must have a five-year or less discounted payback period in order to be considered for funding. The MARR at APC is 10% per year. Is the project described here able to meet this benchmark for funding? End of Year Cash Flow - $260,000 -$30,000 $45,000 $175,000 $265,000 $345,000 $85,000 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year 6-12 The payback period is years. (Round to the nearest whole number) The projedt V the benchmark.Explanation / Answer
Payback period is the period by which years you recover your initial.amount invested.
Payback for this project is 4 years. In 4th year you recover your initial investment of 260,000.
Just keep adding each year cashflows and in 4th year it surpass the initial investment.
For answer 2, drop-down isn't shown the picture. Could you repost with drop down shown.
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