Q#2

Payback period computation; uneven cash flows P1

Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Compute the payback period for this investment (round years to two decimals).

year 1 year 2 year 3 year 4 year 5 Total

Net Cash Flows $60,000 $40,000 $70,000 $125,000 $35,000