1. (a): A project has an initial cost of $157,500 and produces cash inflows of $60,300, $72,900, and $85,500 over three

[answerhappygod]

1. (a): A project has an initial cost of $157,500 and produces
cash inflows of $60,300, $72,900, and $85,500 over three years,
respectively. What is the discounted payback period if the required
rate of return is 12 percent? (Please round to three decimal
places). (b): He is adding toys to store. Cost of inventory is
8000, expenses are 2700, net cash flows are 3600, 3100, 4400, and
4400 over four years. Payback period? Should he add toys if
assigned a three year payback period? Why?