BuyFindarrow_forward

Fundamentals of Financial Manageme...

9th Edition
Eugene F. Brigham + 1 other
ISBN: 9781305635937

Solutions

Chapter
Section
BuyFindarrow_forward

Fundamentals of Financial Manageme...

9th Edition
Eugene F. Brigham + 1 other
ISBN: 9781305635937
Textbook Problem
24 views

PAYBACK PERIOD Refer to problem 11-1. What is the project’s payback?

Summary Introduction

To calculate: The payback period for the given project.

Introduction:

Payback Period:

It refers to the time period that is required to get an amount invested in a project with some return on the project. In other words, it is the time that a project takes to repay the amount invested with some return attached to the project.

Explanation

Given information:

Cost of the project is $65,000.

Life of project is 9 years.

Cash inflow from project per year is $12,000.

Cost of capital of the project is 9%.

The formula to calculate payback period is,

Paybackperiod=(YearoflastnegativeCumulativecashflow)+|LastnegativeCumulativecashflow|(PositivecashFlowin

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

List the four components of GDP. Give an example of each.

Brief Principles of Macroeconomics (MindTap Course List)

EXCHANGE GAINS AND LOSSES You are the vice president of International InfoXchange, headquartered in Chicago, Il...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)