Compute the payback period for this investment, Cost Accounting

Eagle Company is considering the purchase of an asset for $100,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Compute the payback period for this investment. (Round to two decimal places.)

Annual Net Cash Flows
Year 1 40,000
Year 2 40,000
Year 3 35,000
Year 4 35,000
Year 5 30,000


Posted Date: 2/26/2014 2:23:09 AM | Location : United States

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