Horizon Industries is considering investing in a $300,000 project that is expected to generate cash inflows of $60,000 in the first year, $90,000 in the second year, and $150,000 per year thereafter. What is the payback period for the project?

Horizon Industries is considering investing in a $300,000 project that is expected to generate cash inflows of $60,000 in the first year, $90,000 in the second year, and $150,000 per year thereafter. What is the payback period for the project?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...

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Question

What is the payback period for the project of this financial accounting question?

Horizon Industries is considering investing in a $300,000
project that is expected to generate cash inflows of
$60,000 in the first year, $90,000 in the second year, and
$150,000 per year thereafter. What is the payback period
for the project?

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