An investment project provides cash inflows of $660 per year for eight years. Wh

Question

An investment project provides cash inflows of $660 per year for eight years.

What is the project payback period if the initial cost is $1,825? (Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.)

Payback period years ?

What is the project payback period if the initial cost is $3,550? (Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.)

Payback period years ?

What is the project payback period if the initial cost is $5,400? (Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.)

Payback period years ?

Explanation / Answer

Payback period=Initial investment/Annual cash flows

a.Payback period=(1825/660)=2.77 years

b.Payback period=(3550/660)=5.38 years

c.Payback period=(5400/660)=0

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.