Kipling Company hasinvested in a project that has an eight-year life. It isexpected that the annual cash inflow from the project will be$20,000. Assuming that the project has a A PAYBACK PERIODof 3.8 years, how much was the initial investment in theproject?

a. $160,000

b. $99,360

c. $84,000

d. $76,000

The SNIPER Company isplanning a $200,000 equipment investment that has an estimatedfive-year life with no estimated salvage value. The company hasprojected the following annual cash flows for the investment.

Year Cash Inflows

1$120,000

260,000

340,000

440,000

540,000

Total $300,000

Assuming that the cash inflows occur evenly over the year, thepayback period for the investment is:

a. 0.75 years.

b. 1.67 years.

c. 4.91 years.

d. 2.50 years.

What is the payback reciprocal?

a. 1.33

b. 0.60

c. 0.20

d. 0.40

Answer the following and explain, I will give you thumbs up!