US Robotics is evaluating a new product line. The CFO asks for an estimate of number of years to recover the initial investment, ignoring the time value of money. You realize that this is the payback period. The estimated cash flows from the new product line appear below. (Answer in years, round to 2 places) Year 0 cash flow = -79,000 Year 1 cash flow = -35,000 Year 2 cash flow = 30,000 Year 3 cash flow = 38,000 Year 4 cash flow = 44,000 Year 5 cash flow = 28,000 Year 6 cash flow = 44,000 Year 7 cash flow = 22,000

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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US Robotics is evaluating a new product line. The CFO asks for an estimate of number of years to recover the initial
investment, ignoring the time value of money. You realize that this is the payback period. The estimated cash flows from the
new product line appear below. (Answer in years, round to 2 places)
Year 0 cash flow = -79,000
Year 1 cash flow = -35,000
Year 2 cash flow = 30,000
Year 3 cash flow = 38,000
Year 4 cash flow = 44,000
Year 5 cash flow = 28,000
Year 6 cash flow = 44,000
Year 7 cash flow = 22,000
Answer:
Check
Transcribed Image Text:US Robotics is evaluating a new product line. The CFO asks for an estimate of number of years to recover the initial investment, ignoring the time value of money. You realize that this is the payback period. The estimated cash flows from the new product line appear below. (Answer in years, round to 2 places) Year 0 cash flow = -79,000 Year 1 cash flow = -35,000 Year 2 cash flow = 30,000 Year 3 cash flow = 38,000 Year 4 cash flow = 44,000 Year 5 cash flow = 28,000 Year 6 cash flow = 44,000 Year 7 cash flow = 22,000 Answer: Check
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