You invest $200 000 in a project. Your returns are as follows: Year Annual Net Cash Inflow Cumulative Net Cash Inflow 1 $70 000 $70 000 2 $70 000 $140 000 3 $80 000 $220 000 4 $50 000 $270 000 5 $30 000 $300 000 Calculate your payback period? a. 4 years b. 3.5 years c. 2.25 years d. 2.75
You invest $200 000 in a project. Your returns are as follows: Year Annual Net Cash Inflow Cumulative Net Cash Inflow 1 $70 000 $70 000 2 $70 000 $140 000 3 $80 000 $220 000 4 $50 000 $270 000 5 $30 000 $300 000 Calculate your payback period? a. 4 years b. 3.5 years c. 2.25 years d. 2.75
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 19E
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Question
You invest $200 000 in a project. Your returns are as follows:
| Year |
Annual Net |
Cumulative Net Cash Inflow |
| 1 | $70 000 | $70 000 |
| 2 | $70 000 | $140 000 |
| 3 | $80 000 | $220 000 |
| 4 | $50 000 | $270 000 |
| 5 | $30 000 | $300 000 |
Calculate your payback period?
a. 4 years
b. 3.5 years
c. 2.25 years
d. 2.75
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