An investment project provides cash inflows of $710 per year for 10 years. Required: (a) What is the project...

Question

Question

An investment project provides cash inflows of $710 per year for 10 years.

Required:
(a)	What is the project payback period if the initial cost is 2,130?
	(Click to select)3.06 years2.91 years2.85 years3.03 years3 years

(b)	What is the project payback period if the initial cost is 4,828?
	(Click to select)6.8 years6.6 years6.87 years6.46 years6.94 years

(c)	What is the project payback period if the initial cost is 7,810?
	(Click to select)5.25 years3.01 yearsNever1.35 years4.95 years

Answer 1

Answer #1

payback period= initial cost/annual cash flows

1.payback period=2,130/710=3 years

2.payback period=4828/710=6.8 years

3.payback period=7810/710=Never.

Answer 2

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