An investment project provides cash inflows of $1,100 per year for eight years.     a. What is the project payback period if the initial cost is $3,750? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the project payback period if the initial cost is $4,800? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the project payback period if the initial cost is $9,800? (Enter 0 if the project never pays back. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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An investment project provides cash inflows of $1,100 per year for eight years.

   
a. What is the project payback period if the initial cost is $3,750? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b. What is the project payback period if the initial cost is $4,800? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
c. What is the project payback period if the initial cost is $9,800? (Enter 0 if the project never pays back. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
   

 

 

 

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