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 $330,000 the first year, $270,000 the second year, and $250,000 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 $330,000 the first year, $270,000 the second year, and $250,000 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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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 $330,000
the first year,
$270,000
the second year, and
$250,000
each year thereafter for eight years. Compute the payback period. Round to one decimal place.|
The payback in years is
|
|
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