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Year Annual Cash Flow Cumulative Cash Flow 0 -$200,000 -$200,000 1 -14,820 -214,820 2 71,739 -143,081 3 79,598 -63,483 4 87,924 24,441 5 96,743 121,184

Year Annual Cash Flow Cumulative Cash Flow 0 -$200,000 -$200,000 1 -14,820 -214,820 2 71,739 -143,081 3 79,598 -63,483 4 87,924 24,441 5 96,743 121,184

In which year does the program first turn an operating profit? 2. Which column will help you determine payback period? 3. What is the payback period? 4. Whats happening in Year 0? 5. Whats happening in Year 1? 6. Should the company adopt this program?

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