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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.)

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.)

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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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.)
 

Beyer Company is considering the purchase of an asset for $380,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $90,000 $50,000 $70, 000 $250,000 $11,000 $471,000 Compute the payback perlod for this Investment. (Cumulative net cash outflows must be entered with a mlnus slgn. Round your Payback Perlod answer to 2 decimal place.) Cumulative Net Cash Inflow Year Cash Inflow (Outflow) (Outflow) (380,000) 1 Payback period = 2. 3. 4)
Transcribed Image Text:Beyer Company is considering the purchase of an asset for $380,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $90,000 $50,000 $70, 000 $250,000 $11,000 $471,000 Compute the payback perlod for this Investment. (Cumulative net cash outflows must be entered with a mlnus slgn. Round your Payback Perlod answer to 2 decimal place.) Cumulative Net Cash Inflow Year Cash Inflow (Outflow) (Outflow) (380,000) 1 Payback period = 2. 3. 4)
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