Project I 2 of -1000 400 600 200 200 To00 1200 1400 1500 Project 2 5 -1000 400 600 1100 600 700 100 500 10 ססך1 FORMULA: payback = years before full t unrecovered amount at the Start OF period %3D me covery cash Flow during the period Project I pay back 2 +_0 2 years %3D 200 Project 2 2 + 500 600 2.85years or 2 years 9 months payback %3D %3D
Project I 2 of -1000 400 600 200 200 To00 1200 1400 1500 Project 2 5 -1000 400 600 1100 600 700 100 500 10 ססך1 FORMULA: payback = years before full t unrecovered amount at the Start OF period %3D me covery cash Flow during the period Project I pay back 2 +_0 2 years %3D 200 Project 2 2 + 500 600 2.85years or 2 years 9 months payback %3D %3D
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the answer

Transcribed Image Text:Project I
4
200
| 200 1400 1900
2
3
400
200
To00
-1000
100
Project 2
400
600
1100
600
700
-1000
100
560
ססך1
2400
FORMULA:
payback =years before pull t unrecovered amount at the
%3D
re covery
Start Of period
cash Flow during the period
Project I
payback
= 2+
2 years
%31
200
Project 2
payback= 2 + 500
600
12.8years or
2 years 9 months
%3D

Transcribed Image Text:Project I
4
200
| 200 1400 1900
2
3
400
200
To00
-1000
100
Project 2
400
600
1100
600
700
-1000
100
560
ססך1
2400
FORMULA:
payback =years before pull t unrecovered amount at the
%3D
re covery
Start Of period
cash Flow during the period
Project I
payback
= 2+
2 years
%31
200
Project 2
payback= 2 + 500
600
12.8years or
2 years 9 months
%3D
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