Question

Mansi Inc. is considering a project that has the following cash flow data. What is the projects regular payback? Year 0 1 2
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Answer #1
Please find the answer below.
Statement showing computation:
Payback period :
Time Amount Cumulative
                                                                                      -                          (750.00)                                                 (750.00)
                                                                                 1.00                          228.00                                                 (522.00)
                                                                                 2.00                          325.00                                                 (197.00)
                                                                                 3.00                          350.00                                                    153.00
Payback period = 2+ 197/350
Payback period = 2+ 0.56= 2.56
So correct answer is 2.56 years
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