Beyer Company is considering buying an asset for $310,000. It is expected to produce the following net cash flows. Year 4 Year 5 $250,000 $18,000 Year Initial investment Year 1 Year 1 $80,000 Net cash flows Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places.) Year 2 Year 3 Year 4 Year 5 Total Net Cash Flows $ (310,000) Year 2 $40,000 Payback period= Year 3 $70,000 Cumulative Cash Flows

Beyer Company is considering buying an asset for $310,000. It is expected to produce the following net cash flows. Year 4 Year 5 $250,000 $18,000 Year Initial investment Year 1 Year 1 $80,000 Net cash flows Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places.) Year 2 Year 3 Year 4 Year 5 Total Net Cash Flows $ (310,000) Year 2 $40,000 Payback period= Year 3 $70,000 Cumulative Cash Flows

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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