An investment project provides cash inflows of $690 per year for eight years. Wh

Question

An investment project provides cash inflows of $690 per year for eight years. What is the project payback period if the initial cost is $1,875? What if the initial cost is $3,650? What if it is $5,600?

What is the project payback period if the initial cost is $1,875? (Enter 0 if the project never pays back. Round your answer to 2 decimal places. (e.g., 32.16))

What is the project payback period if the initial cost is $3,650? (Enter 0 if the project never pays back. Round your answer to 2 decimal places. (e.g., 32.16))

What is the project payback period if the initial cost is $5,600? (Enter 0 if the project never pays back. Round your answer to 2 decimal places. (e.g., 32.16))

What is the project payback period if the initial cost is $1,875? (Enter 0 if the project never pays back. Round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

1) payback period = 2+(1875-1380)/690 = 2.72

payback(for 3650) = 5+(200/690) = 5.29

payback (for 5600) = 0

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