Aggressive Corporation has a proposal for a project that will have the following cash flows in the next three years. The board of Aggressive will not approve any projects that will pay back in more than 3 years. What is the payback period and the discounted payback period for this project? The discount rate is 10%. Using each method, is it a “Go” or a “No Go?”
Investment Beginning of Year 1 200,000
Income End of Year 1 60,000
Income End of Year 2 80,000
Income End of Year 3 100,000