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Break - even time is a measure of the expected time until the present value of the net cash flows from an investment equals the
Breakeven time is a measure of the expected time until the present value of the net cash flows from an investment equals the initial investment. It overcomes the payback period's limitation of ignoring the time value of money. It is computed like the payback period but uses discounted cash flows.A $ initial investment will generate the following present values of net cash flows.
What is the breakeven time for this investment? Include the number and the decimal place.
tableYeartablePresent Value of NetCash FlowstableCumulative Present Valueof Net Cash FlowsInitial investment $$
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