Question
Beyer Company is considering buying an asset for $180,000. It is expected to produce the following net cash flows. Year 1 Year 2 Year 3
Beyer Company is considering buying an asset for $180,000. It is expected to produce the following net cash flows.
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Net cash flows | $60,000 | $40,000 | $70,000 | $125,000 | $35,000 |
Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places.)
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele
10th edition
9780077515904, 007802529X, 77515900, 978-0078025297
