Cash flow: Inflow and outflow movement of cash is known as Cash flows. Cash flows are the expected cash to be generated by an asset, investment or business. There are two types of cash flows, namely cash inflow and cash outflow . The payments refer to cash outflows and receipts refer to cash inflows. Payback period: The payback period refers the time period in which the investment will reach the break-even of an investment. It shows the minimum time required for an investment to cover its invested cost. To Analyze: The payback period of the given investment.

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Chapter 8, Problem 13P

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Cash flow: Inflow and outflow movement of cash is known as Cash flows. Cash flows are the expected cash to be generated by an asset, investment or business. There are two types of cash flows, namely cash inflow and cash outflow. The payments refer to cash outflows and receipts refer to cash inflows.

Payback period: The payback period refers the time period in which the investment will reach the break-even of an investment. It shows the minimum time required for an investment to cover its invested cost.

To Analyze: The payback period of the given investment.

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