Question
The CWB Company is considering opening a new gallery which is expected to generate the following cash flows over 5 years. Central Investment cost in
The CWB Company is considering opening a new gallery which is expected to generate the following cash flows over 5 years.
Central | |
Investment cost in Year 0, HKD | 460,003 |
Cash Flows in Year 1, HKD | 70,000 |
Cash Flows in Year 2, HKD | 100,000 |
Cash Flows in Year 3, HKD | 130,000 |
Cash Flows in Year 4, HKD | 140,000 |
Cash Flows in Year 5, HKD | 140,000 |
Salvage Value in Year 5, HKD | 100,000 |
Assume that cash flow is uniform within each year, what is the payback period for this gallery? (Round your final answer to two decimal places)
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Comprehensive Assurance & Systems Tool An Integrated Practice Set
Authors: Laura R Ingraham, J Greg Jenkins
3rd Edition
0133251969, 9780133251968
