First enter the formula, then calculate the payback period. (Round your answer to two decimal places)Full yearsAmount to complete recovery in next yearProjected cash inflow in next yearPaybackyears Tumer Hardware is adding a new product line that will require an investment of $1,480,000 Managers estimate that this investment will have a 10-year Me and generate net cash inflows of $330.000 the first year$270,000 the second year, and $230.000 each year thereafter for eight years. The investment has no residual value Compute the payback periodCmFirst enter the formula, then calculate the payback period (Round your answer to two decimal places)Full years*( Amount to complete recovery in next yearProjected cash inflow in next year ) Paybackyears

5 years (full years) + $190,000 (amount to complete in next year) / $230,000 (projected cash flows…

First enter the formula, then calculate the payback period (Round your answer to two decimal places) Full years Amount to complete recovery in next year Projected cash inflow in next year )= Payback years

First enter the formula, then calculate the payback period (Round your answer to two decimal places) Full years Amount to complete recovery in next year Projected cash inflow in next year )= Payback years

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

First enter the formula, then calculate the payback period. (Round your answer to two decimal places)
Full years
Amount to complete recovery in next year
Projected cash inflow in next year
Payback
years

Tumer Hardware is adding a new product line that will require an investment of $1,480,000 Managers estimate that this investment will have a 10-year Me and generate net cash inflows of $330.000 the first year
$270,000 the second year, and $230.000 each year thereafter for eight years. The investment has no residual value Compute the payback period
Cm
First enter the formula, then calculate the payback period (Round your answer to two decimal places)
Full years
*( Amount to complete recovery in next year
Projected cash inflow in next year ) Payback
years

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