Based on the payback method should she make this investment

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Reference no: EM131493487

Ginny is considering an investment costing $55,000 that has cash flows of $35,000 in Year 2, $36,000 in Year 3, and − $5,000 in Year 4. Ginny requires a rate of return of 8 percent and has a required payback period of three years. Based on the payback method should she make this investment? All things considered, do you agree with this decision? Why or why not? Please show any work.

Reference no: EM131493487

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