Radiology associates is considering an investment

Reference no: EM13551377

Radiology Associates is considering an investment which will cost $259,000. The investment produces no cash flows for the first year. In the second year, the cash inflow is $58,000. This inflow will increase to $150,000 and then $200,000 for the following two years before ceasing permanently. The firm requires a 14 percent rate of return and has a required discounted payback period of three years. Accept or reject this project? Why?

Reference no: EM13551377

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Radiology associates is considering an investment : Radiology Associates is considering an investment

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