Diamond Ltd has a payback period limit of three years and is considering investing in one of the following projects. Both projects require an initial investment of $800,000. Cash inflows accrue evenly throughout the year.
?????????????????????? Project Alpha??????????????????????? ??????????????????????????? Project Beta
????????? ? Year?????????????????????Cash?inflow??????????????????????????????? Year????????????????? Cash inflow?
?????????????????????????????????????????????? $???????????????????????????????????????????????????????????????????????? ?$
?????????????? 1?????????????????????????? 250,000??????????????????????????????????? 1???????????????????????? 250,000
?????????????? 2?????????????????????????? 250,000??????????????????????????????????? ?2????????????????????????350,000
?????????????? 3?????????????????????????? 400,000??????????????????????????????????? ?3????????????????? ???? ?400,000
????????????? 4???????????????????????????300,000????????????????????????????????????? 4????????????????????????200,000
????????????? 5????????????????????????? ?200,000???????????????????????????????? ??? ?5??????????????????????? 150,000
????????????? 6???????????????????????? ? 50,000??????????????????? ??????????????????? 6??????????????????????? 150,000
The company's cost of capital is 10%.
【單項選擇題】
What is the non-discounted payback period of Project Beta?
2 years and 2 months
2 years and 4 months
2 years and 5 months
2 years and 6 months