Reference no: EM131566959
Creative Solutions, Inc., has just invested $5,264,300 in new equipment. The firm uses a payback period criteria of not accepting any project that takes more than four years to recover its costs. Management anticipates cash flows of $616,800, $619,000, $1,003,000, $1,058,700, $2,893,900, and $2,701,100 over the next six years. (Round answer to 2 decimal places, e.g. 15.25.)
What is the payback period of this investment?
Payback period is _____ years?
should creative solutions, inc go ahead with this project?
the firm should or should not accept the project?
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