An investment project provides cash inflows of $650 per year for 11 years. a. What is...

Question

Question

An investment project provides cash inflows of $650 per year for 11 years.

a. What is the project payback period if the initial cost is $2,600?

b. What is the project payback period if the initial cost is $4,290?

c. What is the project payback period if the initial cost is $7,800?

Answer 1

Answer #1

payback period= initial cost/annual cash flows

1.payback period=2,600/650=4 years

2.payback period=4290/650=6.6 years

3.payback period=7800/650=Never.

Answer 2

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