question archive Ace Hardware is adding a new product line that will require an investment of $1,512,000
Ace Hardware is adding a new product line that will require an investment of $1,512,000
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Ace Hardware is adding a new product line that will require an investment of $1,512,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $320,000 the first year, $300,000 the second year, and $250,000 each year thereafter for eight years. Compute the payback period. Round to one decimal place. The payback in years is
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Payback = 5.6 years
Payback = Period with last negative cumulative + (Last negative cumulative / Next year net cash inflow)
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