Ask Question
11 December, 10:56

An investment project provides cash inflows of $570 per year for eight years. What is the project payback period if the initial cost is $1,675? (Enter 0 if the project never pays back. Round your answer to 2 decimal places, e. g., 32.16.) Payback period 2.98 years What is the project payback period if the initial cost is $3,275? (Enter 0 if the project never pays back. Round your answer to 2 decimal places, e. g., 32.16.) Payback period years What is the project payback period if the initial cost is $4,800? (Enter 0 if the project never pays back. Round your answer to 2 decimal places, e. g., 32.16.) Payback period years

+3
Answers (1)
  1. 11 December, 14:22
    0
    Invest. Cash Flow Payback

    -$1,675 $570 2,94

    -$3,275 $570 5,75

    -$4,800 $570 8,42

    Explanation:

    The payback period method gives the total time necessary to get back the money invested in a project considering the each year cash flows.

    As here the Cash flow are the same each year only it's necessary to divide de amount invested by the annual cash flow expected.

    Invest. Cash Flow Payback

    -$1,675 $570 2,94 = $1,675/$570

    -$3,275 $570 5,75 = $3,275/$570

    -$4,800 $570 8,42 = $4,800/$570
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “An investment project provides cash inflows of $570 per year for eight years. What is the project payback period if the initial cost is ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers