Beyer Company is considering the purchase of an asset for $400,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year 1 Year 2 Year 3 Net cash flows $80,000 $70,000 Year 4 Year 5 Total $80,000 $200,000 $15,000 $445,000 Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal place.) Cumulative Net Cash Inflow Cash Inflow Year (Outflow) (Outflow) 2$ (400,000) 1 2 4 Payback period =

Beyer Company is considering the purchase of an asset for $400,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year 1 Year 2 Year 3 Net cash flows $80,000 $70,000 Year 4 Year 5 Total $80,000 $200,000 $15,000 $445,000 Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal place.) Cumulative Net Cash Inflow Cash Inflow Year (Outflow) (Outflow) 2$ (400,000) 1 2 4 Payback period =

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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