Beyer Company is considering the purchase of an asset for $290,000. 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		$	70,000			$	40,000			$	70,000			$	200,000			$	20,000			$	400,000

Compute the payback period for this investment

Beyer Company is considering the purchase of an asset for $290,000. 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 flow $70,000 $40,000 $70,000 $ 200,000 $20,000 $400,000 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.) Year Cumulative Net Cash Inflow Cash Inflow (Outflow) (Outflow) $ (290,000) $ (290,000) 70,000 (220,000) 0 1 1 40,000 N 3 70,000 4 200,000 90,000 5 20,000 Payback period =