Beyer Company is considering buying an asset for $370,000. It is expected to produce the following net cash flows. Year 4 Year 5 $300,000 $12,000 Year Year 1 $86,000 Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Total 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.) Net Cash Flows $ (370,000) Year 2 $49,000 whack period Year 3 $70,000 Cumulative Cash Flows
Beyer Company is considering buying an asset for $370,000. It is expected to produce the following net cash flows. Year 4 Year 5 $300,000 $12,000 Year Year 1 $86,000 Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Total 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.) Net Cash Flows $ (370,000) Year 2 $49,000 whack period Year 3 $70,000 Cumulative Cash Flows
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: accounting
Transcribed Image Text:to produce the following net cash flows. Net cash flows Year Year 1 $86,000
Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Total 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.) $ (370,000) Year 2 $49,000 Payback period =
Year 3 $70,000 Year 4 $300,000 Cumulative Cash Flows Year 5 $12,000
Transcribed Image Text:Beyer Company is considering buying an asset for $370,000. It is expected to produce the following net cash flows.
Year 1
Year 4
Year 5
$86,000
$300,000
$12,000
Year
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.)
Initial investment
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Net Cash Flows
$ (370,000)
Year 2
$49,000
Payback period =
Year 3
$70,000
Cumulative Cash
Flows
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