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Beyer Company is considering buying an asset for $250,000. It is expected to produce the following net cash flows. Year 4 Year 5 $130,000 $24,000 Year Net cash flows Compute the payback period for this investment. Note: Cumulative net cash outflows Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Total Year 1 $50,000 Net Cash Flows $ (250,000) Year 2 $36,000 Payback period Year 31 $60,000 must be entered with a minus sign. Round your Payback Period answer to 2 decimal places. Cumulative Cash Flows

Beyer Company is considering buying an asset for $250,000. It is expected to produce the following net cash flows. Year 4 Year 5 $130,000 $24,000 Year Net cash flows Compute the payback period for this investment. Note: Cumulative net cash outflows Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Total Year 1 $50,000 Net Cash Flows $ (250,000) Year 2 $36,000 Payback period Year 31 $60,000 must be entered with a minus sign. Round your Payback Period answer to 2 decimal places. Cumulative Cash Flows

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Beyer Company is considering buying an asset for $250,000. It is expected to produce the following net cash flows. Year 4 $130,000 Net cash flows Year Year 1 $50,000 Year 5 Total Compute the payback period for this investment. Note: Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places. Net Cash Flows Initial investment $ (250,000) Year 1 Year 2 Year 3 Year 4 Year 2 $36,000 Payback period=> Year 3 $60,000 Cumulative Cash Flows Year 5 $24,000
Transcribed Image Text:Beyer Company is considering buying an asset for $250,000. It is expected to produce the following net cash flows. Year 4 $130,000 Net cash flows Year Year 1 $50,000 Year 5 Total Compute the payback period for this investment. Note: Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places. Net Cash Flows Initial investment $ (250,000) Year 1 Year 2 Year 3 Year 4 Year 2 $36,000 Payback period=> Year 3 $60,000 Cumulative Cash Flows Year 5 $24,000
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