13. A potential project needs an investment of £80,000 and has forecast cashflows over its 4 years of 30,000, 30,000, 60,000 and 80,000 for years 1, 2, 3 and 4 respectively. The cashflows are received evenly over the relevant year but the residual value of the investment (£20,000) will not be received until the end of the project. What is the payback period? (a) 2 years (b) 2 years 4 months (c) 3 years 4 months (d) 3 years 6 months

13. A potential project needs an investment of £80,000 and has forecast cashflows over its 4 years of 30,000, 30,000, 60,000 and 80,000 for years 1, 2, 3 and 4 respectively. The cashflows are received evenly over the relevant year but the residual value of the investment (£20,000) will not be received until the end of the project. What is the payback period? (a) 2 years (b) 2 years 4 months (c) 3 years 4 months (d) 3 years 6 months

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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