PA2. LO 11.2Jasmine Manufacturing is considering a project that will require an initial investment of $52,000 and is exp...
PA2.
LO 11.2Jasmine Manufacturing is considering a project that will require an initial investment of $52,000 and is expected to generate future cash flows of $10,000 for years 1 through 3, $8,000 for years 4 and 5, and $2,000 for years 6 through 10. What is the payback period for this project?
Homework Answers
Answer :- Payback Period - 8 Years
| Year | Total Flow | Cumulative Flow |
| 0 | -$52,000 | -$52,000 |
| 1 | $10,000 | -$42,000 |
| 2 | $10,000 | -$32,000 |
| 3 | $10,000 | -$22,000 |
| 4 | $8,000 | -$14,000 |
| 5 | $8,000 | -$6,000 |
| 6 | $2,000 | -$4,000 |
| 7 | $2,000 | -$2,000 |
| 8 | $2,000 | $0 |
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PA2. LO 11.2Jasmine Manufacturing is considering a project that will require an initial investment of $52,000 and is exp...
PA2. LO 11.2Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
PA2. LO 11.2Jasmine Manufacturing is considering a project that will require an initial investment of $52,000 and is expected to generate future cash flows of $10,000 for years 1 through 3, $8,000 for years 4 and 5, and $2,000 for years 6 through 10. What is the payback period for this project?
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