Question
Exercise 24-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $230,000. It is expected
Exercise 24-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $230,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year Net cash flows Year $53,000 Year 2 $35,000 Year 1 $64,000 Year 4 $350,000 year 5 $26,000 Total $328,000 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.) Cash Inflow Year Cumulative Net Cash Inflow (Outflow) (Outflow) 0 $ (230,000) 1 2 3 4 5 Payback period
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