What is the payback period for the following set of cash flows? (Round your answer to...

Question

Question

What is the payback period for the following set of cash flows? (Round your answer to 2 decimal places, e.g., 32.16.)

Payback period years

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+(875/1475)

=3.59 years(Approx).

Answer 2

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