Suppose you want to invest in a $200,000 project that you expect to provide cash inflows of $50,000 in the first year, $75,000 in the second, and $120,000 per year thereafter, what is the payback period?

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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What is the payback period? General accounting

Suppose you want to invest in a $200,000 project that you
expect to provide cash inflows of $50,000 in the first
year, $75,000 in the second, and $120,000 per year
thereafter, what is the payback period?
Transcribed Image Text:Suppose you want to invest in a $200,000 project that you expect to provide cash inflows of $50,000 in the first year, $75,000 in the second, and $120,000 per year thereafter, what is the payback period?
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