Exercise 24-3 (Algo) Payback period and unequal cash flows LO P1 Beyer Company is considering buying an asset for $240,000. It is expected to produce the following net cash flows. Year 5 $25,000 Net cash flows Year Year 1 $60,000 Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Total Compute the payback period for this Investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Perlod answer to 2 decimal places.) Net Cash Flows $ (240,000) Year 2 $36,000 Payback period = Year 3 $60,000 Cumulative Cash Flows Year 4 $150,000

Exercise 24-3 (Algo) Payback period and unequal cash flows LO P1 Beyer Company is considering buying an asset for $240,000. It is expected to produce the following net cash flows. Year 5 $25,000 Net cash flows Year Year 1 $60,000 Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Total Compute the payback period for this Investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Perlod answer to 2 decimal places.) Net Cash Flows $ (240,000) Year 2 $36,000 Payback period = Year 3 $60,000 Cumulative Cash Flows Year 4 $150,000

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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