Question
Oriole Inc. is contemplating a capital investment of $91000. The cash flows over the projects four years are: Year Expected Annual Cash Inflows Expected Annual
Oriole Inc. is contemplating a capital investment of $91000. The cash flows over the projects four years are:
| Year | Expected Annual Cash Inflows | Expected Annual Cash Outflows | ||
|---|---|---|---|---|
| 1 | $30000 | $12000 | ||
| 2 | 45000 | 20000 | ||
| 3 | 58000 | 26000 | ||
| 4 | 49000 | 28000 |
The cash payback period is 3.33 years. 3.79 years. 2.50 years. 3.76 years.
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Financial Accounting An Introduction
Authors: Jacqui Kew, Alex Watson
4th Edition
0199046484, 978-0199046485
