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Beyer Company is considering the purchase of an asset for $350,000. It is expected to produce the following net cash flows. The cash flows occur
Beyer Company is considering the purchase of an asset for $350,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year.
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total | |||||||||||||||||||
Net cash flows | $ | 82,000 | $ | 45,000 | $ | 70,000 | $ | 180,000 | $ | 14,000 | $ | 391,000 | ||||||||||||
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 place.)
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