Question

Consider the following cash flows: Year Cash Flow 0 −$5,900         1 2,000         2 2,700         3 1,500 &nbs

Consider the following cash flows:
Year Cash Flow
0 −$5,900        
1 2,000        
2 2,700        
3 1,500        
4 900        
Required:

What is the payback period for the above set of cash flows? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

  Payback period years
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Answer #1

So payback period = 2.80 years

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