There is a project with the following cash flows : Year Cash Flow 0 −$23,000 1...

Question

Question

There is a project with the following cash flows :

What is the payback period?

business finance

Answer 1

Answer #1

Payback period=Last period with a negative cumulative cash flow+(Absolute value of cumulative cash flows at that period/Cash flow after that period).

=3+(1800/4800)

=3.38 years(Approx).

Answer 2

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