Question
Exercise 24-3 (Algo) Payback period and unequal cash flows LO P1 Beyer Company is considering buying an asset for $310,000. It is expected to produce
Exercise 24-3 (Algo) Payback period and unequal cash flows LO P1
Beyer Company is considering buying an asset for $310,000. It is expected to produce the following net cash flows.
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Net cash flows | $80,000 | $40,000 | $70,000 | $250,000 | $18,000 |
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 places.)
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Montgomerys Auditing Classic Reprint Series
Authors: Robert Hiester Montgomery
1st Edition
1390439356, 978-1390439359
