Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Step 1: What is the ROI on your MBA?Eg. If the cost of your investment having an MBA is $150,032 Show the payback computation. The

Step 1: What is the ROI on your MBA?Eg. If the cost of your investment having an MBA is $150,032 Show the payback computation. The Payback Method is considered a simple method insofar that is does not factor in the time value of money, but it is also easily understood and allows for a quick evaluation. You need to provide a table (e.g. either a Word table or cut/paste from Excel into Word)It should look like something in the attached picture but with the figure I provided above which is $150,032

image text in transcribed
Net Cash flow for the Unrecovered investment at year year end Year 0 (5,000,000) 5,000,000 Year 1 1,700,000 3,300,000 Year 2 1,700,000 1,600,000 Year 3 1,200,000 400,000 Year 4 1,200,000 (800,000) Year 5 1,200,000 (2,000,000), From the data above, we can see that project investment is being recovered in the 4th year. So the formula for the payback period would be: = 3 years +recoverable investment at the end of year 3 net cash inflow for year 4 = 3+ 400,000 1,200,000 = 3.33 years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian Edition

1119497043, 978-1119497042

More Books

Students also viewed these Accounting questions