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QUESTION:



Walken
Hardware is adding a new product line that will require an investment of
$ 1 comma 500 comma 000.

Managers estimate that this investment will have a​ 10-year life and generate net cash inflows of

$ 335 comma 000

the first​ year,

$ 250 comma 000

the second​ year, and

$ 225 comma 000

each year thereafter for eight years. The investment has no residual value. Compute the payback period.



ANSWER:

First enter the​ formula, then calculate the payback period. ​(Round your answer to two decimal​ places.)
Part 2

Full years
+ (
Amount to complete recovery in next year
÷
Projected cash inflow in next year
) =
Payback
6
+ (
$15,000
÷
$225,000
) =
6.07
yea

Posted by Cleveland on September 5, 2024
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