Define payback period. Explain how it can be used (5 lines).
List some advantages of payback period in capital budgeting
decisions. Explain one of what you have listed (in 5 lines).
Explain (in 5 lines) one problem, pitfall, or disadvantage of
using the payback.
Question Two has 40 points
2. Consider a project with a cost of $1000, with the following
expected cash inflows, and a WACC of 16%.
Show your calculations by way of formulas, numerical values and
if...