Question

A B

A

B

0 0
Add a comment Improve this question Transcribed image text
Answer #1

A) The company will recover its initial cash flow in Year 5

The extra amount beyond the initial investment in Year 5 is $8,000 (= 58,000 - 50,000)

Payback period = Last year before which we recover our initial investment (Year 4) + (Shortfall of the initial investment in that year)/Next year cash flow

Payback period = 4 + 3,000/11,000

Payback period = 4.27 Years

Please do not downvote for not answering the remaining questions. As per HOMEWORKLIB RULES, when there are multiple questions, we are encouraged to provide a solution to at least the first question.

So, can you please upvote? Thank you :-)

Add a comment
Know the answer?
Add Answer to:
A B
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
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