Your company is considering undertaking a project to expand an existing product line. The required rate of return on the project is 8% and the maximum allowable payback period is 3 years. Time 0 1 2 3...


Your company is considering undertaking a project to expand an existing product line. The required rate of return on the project is 8% and the maximum allowable payback period is 3 years.



























Time



0



1



2



3



4



5



6



Cash Flow



$(10,000)



$2,400



$4,800



$3,200



$3,200



$2,800



$2,400




Questions


Evaluate the project using the following method.



  • Simple Rate of Return


should the project be accepted or rejected?





Jun 04, 2022
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