Roberts Hardware is adding a new product line that will require an investment of $1,418,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $320,000 the first year, $300,000 the second year, and $260,000 each year thereafter for eight years. Compute the payback period. Round to one decimal place. The payback in years is ...
Roberts Hardware is adding a new product line that will require an investment of $1,418,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $320,000 the first year, $300,000 the second year, and $260,000 each year thereafter for eight years. Compute the payback period. Round to one decimal place. The payback in years is ...
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Roberts Hardware is adding a new product line that will require an investment of $1,418,000. Managers estimate that
this investment will have a 10-year life and generate net cash inflows of $320,000 the first year, $300,000 the
second year, and $260,000 each year thereafter for eight years. Compute the payback period. Round to one decimal
place.
The payback in years is
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