Beyer Company is considering the purchase of an asset for $240,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year Net cash flows 0 1 2 3 4 6 5 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 place.) $ Cash Inflow (Outflow) Year 1 $60,000 (240,000) Year 2 $36,000 Cumulative Net Cash Inflow (Outflow) Year 3 $60,000 Year 4 $150,000 Year 5 $25,000 Total $331,000

Beyer Company is considering the purchase of an asset for $240,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year Net cash flows 0 1 2 3 4 6 5 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 place.) $ Cash Inflow (Outflow) Year 1 $60,000 (240,000) Year 2 $36,000 Cumulative Net Cash Inflow (Outflow) Year 3 $60,000 Year 4 $150,000 Year 5 $25,000 Total $331,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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