Question
Exercise 24-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $360,000. It is expected to
Exercise 24-1 Payback period computation; uneven cash flows LO P1
Beyer Company is considering the purchase of an asset for $360,000. 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 | $ | 80,000 | $ | 50,000 | $ | 70,000 | $ | 250,000 | $ | 13,000 | $ | 463,000 | ||||||||||||
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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Auditing Principles And Techniques
Authors: Prof. A.R. Solanki
1st Edition
9350533979, 9789350533970
