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Having successfully sold the bookstore, Louie is now interested in other investment projects. He is considering investing in a lease on a set of timber properties where his lumberjack skills could be put to good use.

The lease would require an upfront investment of $250,000 and Louie anticipates that he could then harvest enough timber to generate the following cash flows during the terms of the 3-year lease: year 1 - $75,000; year 2 - $125,000; year 3 $200,000.

What is Louie's payback period for this investment?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92838280

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