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Payback Period Beyer Company is considering the purchase of an asset for $180,000. a. Assume it is expected to produce net cash flows of $66,000
Payback Period
Beyer Company is considering the purchase of an asset for $180,000.
a. Assume it is expected to produce net cash flows of $66,000 a year for 5 years. Compute the payback period. years (enter as x.xx)
b. Now assume the cash flows do not occur evenly, but have the following cash flow stream.
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total | |
| Net cash flows | $60,000 | $40,000 | $70,000 | $125,000 | $35,000 | $330,000 |
Compute the payback period. years (Enter as x.xx)
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