Madina Corporation is evaluating a business proposal that has the following projections.
Required capital GH¢20,000
Required rate of return / cost of capital 11%
Estimated recovery period and yearly net cash inflows are
Years: 0 1 2 3 4 5
Cash flows (GH¢) (20,000) 9,000 8,000 7,000 7,000 10,000
Required
Calculate the payback period and comment on it.
Calculate the discounted payback period and comment on it