5 a. What is the payback period (Be exact to 1 decimal place) of the cash flow below? 2300 2300 2100 2100 1900 1700 1900 1700 1500 1500 o 1 2 3 4 5 e7 8 9 10 11 12 1800 2000 10000 5 b. A project has the following costs and benefits. What is the payback period (Be exact to 1 decimal place)? Year Cost Benefits 30,000 1-3 15,000 each year 12,000 each year 4 7,000 3,000 5-10 11,000 each year

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
100%

5 a. What is the payback period (Be exact to 1 decimal place) of the cash flow below? (I am attaching an image for the figure)
5 b. A project has the following costs and benefits. What is the payback period (Be exact to 1 decimal place)?

Year                         Cost                            Benefits
0                             30000
1-3                  15,000 each year            12,000 each year
4                              7000                              3000
5-10                                                        11,000 each year

5 a. What is the payback period (Be exact to 1 decimal place) of the cash flow below?
2300
2300
2100
2100
1900
1700
1900
1700
1500
1500
o 1 2 3 4 5 e7 8 9 10 11 12
1800
2000
10000
5 b. A project has the following costs and benefits. What is the payback period (Be exact to 1
decimal place)?
Year
Cost
Benefits
30,000
1-3
15,000 each year
12,000 each year
4
7,000
3,000
5-10
11,000 each year
Transcribed Image Text:5 a. What is the payback period (Be exact to 1 decimal place) of the cash flow below? 2300 2300 2100 2100 1900 1700 1900 1700 1500 1500 o 1 2 3 4 5 e7 8 9 10 11 12 1800 2000 10000 5 b. A project has the following costs and benefits. What is the payback period (Be exact to 1 decimal place)? Year Cost Benefits 30,000 1-3 15,000 each year 12,000 each year 4 7,000 3,000 5-10 11,000 each year
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 4 images

Blurred answer
Knowledge Booster
Production Tax Credit
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education