1 Oriole Inc. is contemplating a capital investment of $108000. The cash flows over the project's four years are:ExpectedExpectedAnnualAnnualCash InflowsCashOutflowsYear1$38000$1600026100025000375000300005000040000The cash payback period isO 3.50 years.O 2.20 years.О 3.12 years.O 3.56 years.

Payback period is an investment appraisal method. This calculates the time required for the project…

Oriole Inc. is contemplating a capital investment of $108000. The cash flows over the project's four years are: Expected Expected Annual Annual Cash Year Cash Inflows Outflows 1 $38000 $16000 61000 25000 75000 30000 4 50000 40000

Oriole Inc. is contemplating a capital investment of $108000. The cash flows over the project's four years are: Expected Expected Annual Annual Cash Year Cash Inflows Outflows 1 $38000 $16000 61000 25000 75000 30000 4 50000 40000

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 4CMA

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Question

Oriole Inc. is contemplating a capital investment of $108000. The cash flows over the project's four years are:
Expected
Expected
Annual
Annual
Cash Inflows
Cash
Outflows
Year
1
$38000
$16000
2
61000
25000
3
75000
30000
50000
40000
The cash payback period is
O 3.50 years.
O 2.20 years.
О 3.12 years.
O 3.56 years.

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