A $182,000 initial investment will generate the following present values of net cash flows. What is the break-even time for this investment? (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Round "Break-even time" answer to 1 decimal place.) Year Initial investment 1 2. 3. 4. 5 Break-even time Present Value of Net Cash Flows $ (182,000) 54,545 49, 584 40,142 40,980 37,254 Cumulative Present Value: of Net Cash Flows $ (182,000) (127,455) (77,871) (37,729) 3, 251 40, 505 years

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Note:-

  • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
  • Answer completely.
  • You will get up vote for sure.
A $182,000 initial investment will generate the following present values of net cash flows. What is the break-even time for this
investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Round "Break-even time" answer to 1 decimal place.)
Year
Initial investment
1.
2.
3.
4.
5.
Break-even time
Present Value
of Net Cash
Flows
$ (182,000)
54, 545
49,584
40,142
40,980
37,254
Cumulative
Present Value
of Net Cash
Flows
$ (182,000)
(127,455)
(77,871)
(37,729)
3, 251
40, 505
years
Transcribed Image Text:A $182,000 initial investment will generate the following present values of net cash flows. What is the break-even time for this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Round "Break-even time" answer to 1 decimal place.) Year Initial investment 1. 2. 3. 4. 5. Break-even time Present Value of Net Cash Flows $ (182,000) 54, 545 49,584 40,142 40,980 37,254 Cumulative Present Value of Net Cash Flows $ (182,000) (127,455) (77,871) (37,729) 3, 251 40, 505 years
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education