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
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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
Transcribed Image Text: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
Expert Solution
Step 1

Calculate the payback period as follows:

Payback period = Initial investment / Net cash inflows

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