Determine the proposals payback period


The management of Mesquite Limited is currently evaluating the following investment proposal:


Time 0

Year 1

Year 2

Year 3

Year 4

Initial Investment

$240,000

-

-

-

-

Net operating






Cash inflows

-

$100,000

$100,000

$100,000

$100,000

  1. Determine the proposal's payback period
  2. Determine the proposal's internal rate of return
  3. Given the amount of the initial investment, determine the minimum annual net cash inflows required to obtain an internal rate of return of 14 percent. Round to the nearest dollar

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Accounting Basics: Determine the proposals payback period
Reference No:- TGS0693074

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