A project has estimated annual net cash flows of $50,600. It is estimated to cost $288,420. Determine the cash payback period. Round the answer to one decimal place. years
A project has estimated annual net cash flows of $50,600. It is estimated to cost $288,420. Determine the cash payback period. Round the answer to one decimal place. years
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 2BE
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Question
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Step 1
Calculate the payback period as follows:
Payback period = Initial investment / Net cash inflows
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