The Hallmark Cards corporate policy is that all projects must achieve a 6-month simple payback in order to be approved. Given the project cash flows below,
a. find the payback period for this project.
b. what is hallmark's internal rate of return for the project? The MARR is 8%.
Month Expense/ Revenue($)
0 -220,000
1 -15,000
2 40,000
3 80,000
4 100,000
5 150,000
6-8 150,000