\\O Files Connect x\' Chapter 11 Class Exen × Q accounting test Rasha x C i Secu

Question

O Files Connect x' Chapter 11 Class Exen × Q accounting test Rasha x C i Secure ! https://newconnect.mheducation.com/flow/connect.html For quick access, place your bookmarks here on the bookmarks bar. Import bookmarks now... Test 4 6 Saved Help Save & Exit Submit Park Co. is considering an investment that requires immediate payment of $35,500 and provides annually for four years. What is the investment's payback period? expected cash infows of $12.600 Payback Period Choose Numerator: Choose Denominator:Payback Payback period 10 points 0119:20

Explanation / Answer

Answer:- Payback period is the time in which the initial cash outflow of an investment is expected to be recovered from the cash inflows generated by the investment. It is one of the simplest investment appraisal techniques.

In case when cash inflow are even, the formula to calculate payback period is:

Payback period =Initial investment / Cash Inflow per period

=$35500/$12600 =2.8 years (Rounded of upto 1 decimal)

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