question archive II = $480,000 year 1 to 4 cash flow is $160,000, $180,000, $200,000, and $300,00
II = $480,000 year 1 to 4 cash flow is $160,000, $180,000, $200,000, and $300,00
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II = $480,000 year 1 to 4 cash flow is $160,000, $180,000, $200,000, and $300,00. Calculate the years payback.
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Years payback period = 2.7 years
Step-by-step explanation
Computation of years payback period:
Years Cash Flow ($) Cumulative Cash Flow ($)
0 (480,000) -480,000
1 160,000 -320,000
2 180,000 -140,000
3 200,000 60,000
4 300,000 360,000
Therefore, years payback period = 2 + (140,000/200000)
= 2.7 years
