Calculate the conventional payback period for the following cash flows. Investment = $250,000 Salvage Value =...
Calculate the conventional payback period for the following cash flows.
Investment = $250,000
Salvage Value = 0
Service Life = 6 years
| n | Cash flow |
| 0 | -250,000 |
| 1 | 75,000 |
| 2 | 55,000 |
| 3 | 65,000 |
| 4 | 25,000 |
| 5 | 35,000 |
| 6 | 20,000 |
Homework Answers
| n | Cash flow | Cumulative cash flow |
| 0 | -2,50,000 | -2,50,000 |
| 1 | 75,000 | -1,75,000 |
| 2 | 55,000 | -1,20,000 |
| 3 | 65,000 | -55,000 |
| 4 | 25,000 | -30,000 |
| 5 | 35,000 | 5,000 |
| 6 | 20,000 | 25,000 |
the conventional payback period
=last year with negative cumulative cash flow+(30000/35000)
=4+(30000/35000)
=4.86 years
the above is answer..
Add Answer to:
Calculate the conventional payback period for the following cash
flows.
Investment = $250,000
Salvage Value =...
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