What is the payback period for the investment project that has the following cash flows? (Round...

Question

Question

What is the payback period for the investment project that has the following cash flows? (Round your answers to 2 decimal places.

Answer 1

Answer #1

Payback period=Last period with a negative cumulative cash flow+(Absolute value of cumulative cash flows at that

period/Cash flow after that period).

=2+(11944/25351)

=2.47 years(Approx).

Answer 2

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