Question
LarkspurInc.is contemplating a capital investment of $78000. The cash flows over the project's four years are: Expected AnnualExpected Annual Year Cash Inflows Cash Outflows 1
LarkspurInc.is contemplating a capital investment of $78000. The cash flows over the project's four years are:
Expected AnnualExpected
AnnualYear Cash Inflows Cash Outflows
1 $38000 $12000
2 28000 20000
3 60000 24000
4 50000 30000
The cash payback period is
3.40years.
3.20years.
2.33years.
3.42years.
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Accounting Information Systems
Authors: George H Bodnar, William S Hopwood
10th Edition
013609712X, 978-0136097129
