Year | Investment | Cumulative Cash Flow | |
0 | $ -2,90,000 | $ -2,90,000 | |
1 | 70000 | $ -2,20,000 | |
2 | $ 40,000 | $ -1,80,000 | |
3 | $ 70,000 | $ -1,10,000 | |
4 | $ 2,00,000 | $ 90,000 | |
5 | $ 20,000 | $ 1,10,000 | |
Payback Period | 3.55 | years | |
Workings: | |||
Payback Period | = | 3 years + ($110000 / $200000) | |
= | 3.55 | years | |
Note: Must put minus sign while posting answer
Beyer Company is considering the purchase of an asset for $290,000. It is expected to produce...
Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Net cash flows Year 1 $60,000 Year 2 $40,000 Year 3 $70,000 Year 4 $125,000 Year 5 $35,000 Total $330,000 Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback period answer to 2 decimal place.) Year Cash Inflow (Outflow)...
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Beyer Company is considering the purchase of an asset for $190,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $50,000 $31,000 $60,000 $140,000 $30,000 $311,00€ Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal place.) Year Cash Inflow (Outflow)...
Beyer Company is considering the purchase of an asset for $250,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Net cash flows Year a Year 2 550,000 $36,000 Year 3 $60,000 Year 4 $130,000 Year 5 $24,000 Total $300,000 Compute the payback period for this investment (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal place.) Year Cash Inflow (Outflow)...
Beyer Company is considering the purchase of an asset for $240,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $ 60,000 $ 36,000 $ 60,000 $ 150,000 $ 25,000 $ 331,000 Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2...
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Exercise 11-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $290,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $ 70,000 $ 40,000 $ 70,000 $ 200,000 $ 20,000 $ 400,000 Compute the payback period for this investment. (Cumulative net cash outflows must be entered with...
Beyer Company is considering the purchase of an asset for $370.000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year 1 $86,000 Year 2 $49,000 Year 3 $70,000 Year 4 $300,000 Year 5 $12,000 Total $517,000 Net cash flows Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback period answer to 2 decimal place.) Year Cash inflow (Outflow)...
Exercise 24-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $360,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Net cash flows Year 1 $80,000 Year 2 $50,000 Year 3 $70,000 Year 4 $250,000 Year 5 $13,000 Total $463,000 Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback...