Question
Coronado is contemplating a capital investment of $19800. The cash flows over the projects five year life are projected as follows: Year Expected Annual Cash
Coronado is contemplating a capital investment of $19800. The cash flows over the projects five year life are projected as follows:
| Year | Expected Annual Cash Inflows | Expected Annual Cash Outflows | ||
|---|---|---|---|---|
| 1 | $5700 | $1000 | ||
| 2 | 7900 | 2000 | ||
| 3 | 9600 | 2500 | ||
| 4 | 12200 | 2900 | ||
| 5 | 14400 | 2600 |
The asset will be depreciated using the straight-line method with no expected salvage value. The cash payback period is?
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Fraud examination
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
4th edition
538470844, 978-0538470841
