4. A project has the following cash flows. What is the payback period? Year Cash Flow...

Question

Question

Answer 1

Answer #1

Payback period is the time within which cost of project is recovered back.

Year	Cash flow	Cumulative cash flow
1	-46000	-46000
2	13500	-32500
3	22900	-9600
4	8400	-1200
5	5600	4400

Payback period		=	4+(1200/5600)
		=	4.21 Years

Answer 2

Similar Homework Help Questions

A project has the following cash flows. What is the payback period? Year Cash Flow 0...

A project has the following cash flows. What is the payback period? Year Cash Flow 0 −$ 10,000 1 1,800 2 3,600 3 5,000 4 6,000 2.83 years 2.38 years 2.75 years 2.92 years 3.03 years
A project has the following cash flows. What is the payback period? Year Cash flow 0...

A project has the following cash flows. What is the payback period? Year Cash flow 0 -14500 1 2200 2 4800 3 6500 4 7500 My question is that should I find positive value in any year when I add future value from the initial value (Year 0) to make a positive value ? Could anyone explain this question?
What is the payback period (PB) for an investment with the following cash flows? Cash Flow...

What is the payback period (PB) for an investment with the following cash flows? Cash Flow $31,500 $8,400 $7,800 $8,900 $9,800 $8,900 Year 0 2 3 4

There is a project with the following cash flows : Year 1 2 Cash Flow -$25,150...

There is a project with the following cash flows : Year 1 2 Cash Flow -$25,150 7,300 8,400 7,250 7,850 6,900 3 4 5 What is the payback period? Multiple Choice O 4.00 years O 3.28 years O 3.54 years O 3.85 years 2.70 years
What is the payback period for the following set of cash flows? Year Cash Flow...

What is the payback period for the following set of cash flows? Year Cash Flow 0 −$ 5,000 1 2,700 2 1,200 3 1,900 4 2,300
What is the payback period for the investment project that has the following cash flows? (Round...

What is the payback period for the investment project that has the following cash flows? (Round your answers to 2 decimal places. Year Cash Flows 0 -66684 1 28400 2 26340 3 25351 4 27385

What is the payback period for the following set of cash flows? Year Cash Flow 0...

What is the payback period for the following set of cash flows? Year Cash Flow 0 −$ 5,300 1 1,300 2 3,000 3 2,200 4 1,600
Calculate the payback period for a project that has the following cash flows? The required return...

Calculate the payback period for a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (12,000) 1 $ 1,000 2 $ 2,000 3 $ 3,000 4 $ 4,000 5 $ 5,000 6 $ 6,000 2.25 years 3.25 years 3.85 years 4.40 years None of these are correct.
Calculate the payback period for a project that has the following cash flows? The required return...

Calculate the payback period for a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (12,000) 1 $ 1,000 2 $ 2,000 3 $ 3,000 4 $ 4,000 5 $ 5,000 6 $ 6,000 Group of answer choices 2.25 years 3.85 years 3.25 years 4.40 years None of these are correct.

Calculate the payback period for a project that has the following cash flows? The required return...

Calculate the payback period for a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (12,000) 1 $ 6,000 2 $ 5,000 3 $ 4,000 4 $ 3,000 5 $ 2,000 6 $ 1,000 Group of answer choices 2.25 years None of these are correct. 3.25 years 4.40 years 3.85 years