Homework Answers
Payback period is the period in which initial investment is recovered.
AMount Receovered in Two Years = 19000 + 19000
= 38000
Amount to be Recovered after 2 Years = 100000 - 38000
= 62000
CF per anum after 2 Years = 9000
PBP = 2 + [ 62000 / 9000 ]
= 2 + 6.89
= 8.89 Years.
Payback period is 8.89 Years.
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Next Page Page 1 of 3 Question 1 (1 point) What is the simple (undiscounted) payback period in years for a $100,000 project with expected cash flows of $19,000 each of the first two years and $9,000 for each year after. Your Answer: Answer
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Next Page Page 1 of 3 Question 1 (1 point) What is the simple (undiscounted) payback period in years for a $100,000 project with expected cash flows of $19,000 each of the first two years and $9,000 for each year after. Your Answer: Answer
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Next Page Page 1 of 3 Question 1 (1 point) What is the simple (undiscounted) payback period in years for a $100,000 project with expected cash flows of $19,000 each of the first two years and $9,000 for each year after. Your Answer: Answer
Next Page Page 1 of 3 Question 1 (1 point) What is the simple (undiscounted) payback period in years for a $100,000 project with expected cash flows of $19,000 each of the first two years and $9,000 for each year after. Your Answer: Answer
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