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Beyer Company is considering buying an asset for $310,000. It is expected to produce the following net cash flows. Year 4 Year 5 $250,000 $18,000 Year Initial investment Year 1 Year 1 $80,000 Net cash flows Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places.) Year 2 Year 3 Year 4 Year 5 Total Net Cash Flows $ (310,000) Year 2 $40,000 Payback period= Year 3 $70,000 Cumulative Cash Flows

Beyer Company is considering buying an asset for $310,000. It is expected to produce the following net cash flows. Year 4 Year 5 $250,000 $18,000 Year Initial investment Year 1 Year 1 $80,000 Net cash flows Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places.) Year 2 Year 3 Year 4 Year 5 Total Net Cash Flows $ (310,000) Year 2 $40,000 Payback period= Year 3 $70,000 Cumulative Cash Flows

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Subject: accounting 

Beyer Company is considering buying an asset for $310,000. It is expected to produce the following net cash flows. Year 4 Year 5 $250,000 $18,000 Year Initial investment Year 1 Year 2 Year 1 $80,000 Net cash flows Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places.) Year 3 Year 4 Year 5 Total Net Cash Flows $ (310,000) Year 2 $40,000 Payback period= Year 3 $70,000 Cumulative Cash Flows
Transcribed Image Text:Beyer Company is considering buying an asset for $310,000. It is expected to produce the following net cash flows. Year 4 Year 5 $250,000 $18,000 Year Initial investment Year 1 Year 2 Year 1 $80,000 Net cash flows Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places.) Year 3 Year 4 Year 5 Total Net Cash Flows $ (310,000) Year 2 $40,000 Payback period= Year 3 $70,000 Cumulative Cash Flows
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