Question

Question 9 1 pts ТІ Att 47 Mansi Inc. is considering a project that has the following cash flow data. What is the project's regular payback? 0 1 Year Cash Flow 2 $325 3 $350 $-750 $228 285 years 256 years 2 years 2.12 years 1.91 years • Previoun Next e here to search O ds 100 DE 8 de & ( 1 $ 4 3 96 5 6 O 7 8 9 backspace > W E R. T U O Р [ S D F G Н. K L < > ? prt sc с V B N M / alt <

Answer 1

Ans is 2.56 years
с D E F G H A B 18 Calculation of payback period 19 Year Cash flow 20 0 -750 21 1 228 Cummulative Cash flow -750 -522 -197 22 2 325 23 3 350 153 24 25 Payback period 2.56 years 26 27 28 Formula- 29 Payback period = Year before the amount is recovered + (Amount left to be recovered / Cash flow during the year of full recovery) 30

C D E A B 18 Calculation of payback period 19 Year Cash flow 200 -750 21 1 228 22 2 325 Cummulative Cash flow =B20 =C20+B21 =C21+B22 =C22+B23 23 3 350 24 25 Payback period =A22+(-C22/B23) years 26 27 28 Formula- 29 Payback period = Year before the amount is recovered + (Amount left to be recovered / Cash flow during the year of full recovery) 30 21
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