Question

4 Exercise 24-1 Payback period computation; uneven cash flows LO P1 soarele 2 peoporck sete comentar una cosa sono com Beyer
Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your P
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer:

Year Cash flow Cumulative Cash Flow
$ (310000) $                        (310000)
1 $      80000 $                        (230000)
2 $      40000 $                        (190000)
3 $      70000 $                        (120000)
4 $   250000 $                           130000
5 $      18000 $                           148000

3 years + (130000/250000)

3.52 Years

Add a comment
Know the answer?
Add Answer to:
4 Exercise 24-1 Payback period computation; uneven cash flows LO P1 soarele 2 peoporck sete comentar...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Exercise 24-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase...

    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...

  • Exercise 24-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase...

    Exercise 24-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $400,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year 1 $80,000 Year 2 $80,000 Year 3 $70,000 Net cash flows Year 4 $200,000 Year 3 $15,000 Total $445,000 Compute the payback period for this investment (Cumulative net cash outflows must be entered with a minus sign. Round your Payback...

  • 4 Exercise 24-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the...

    4 Exercise 24-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $230,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. 5 points Year 1 $53,000 Year 2 $35,000 Year 3 $64,000 Year 4 $ 150,000 Net cash flows Year 5 $26,000 Total $328,000 eBook Hint Compute the payback period for this investment. (Cumulative net cash outflows must be entered with...

  • Exercise 11-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase...

    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...

  • Exercise 11-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $210,000. It is expected to produce the following net cash flows. The cash...

    Exercise 11-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $210,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year1 $64,000 $33,000 62,000 $150,000 $28,000 $337,000 Year2 Year3 Year 4 Year5 Total 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...

  • 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 $290,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Total $400,000 Net cash flows $70, cee $40,000 $70,000 Year 5 $20,000 $200,000 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) Cumulative Net Cash Inflow (Outflow 290,000) Payback...

  • Beyer Company is considering the purchase of an asset for $250,000. It is expected to produce...

    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 $180,000. 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)...

  • Problem 24-5A Payback period, break-even time, and net present value LO P1, A1 Sentinel Company is...

    Problem 24-5A Payback period, break-even time, and net present value LO P1, A1 Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $252,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 3 years, and it requires a 10% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the table...

  • Exercise 24-5 Payback period computation; even cash flows LO P1 Compute the payback period for each...

    Exercise 24-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $290,000 and have a useful life of five years. The system yields an incremental after-tax income of $83,653 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $11,000. b. A machine costs $210,000, has a $15,000 salvage value, is expected...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT