Multiple choice: The following cashflows were provided by Del Monte Products, Inc. in relation to its plan of investing in a replacement machine: Net investment, P2,000,000; Net cash inflows: P800,000; P700,000; P500,000; and P400,000 for years 1, 2, 3, and 4, respectively. The payback period (in years) is:  • 1 • 3 • 2 • 4

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 5E: Cash payback period for a service company Janes Clothing Inc. is evaluating two capital investment...
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Multiple choice:
The following cashflows were provided by Del Monte Products, Inc. in relation to its plan of investing in a replacement machine: Net investment, P2,000,000; Net cash inflows: P800,000; P700,000; P500,000; and P400,000 for years 1, 2, 3, and 4, respectively. The payback period (in years) is: 
• 1
• 3
• 2
• 4

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