Solution-Determine the cash payback period for each proposal

Determine the cash payback period for each proposal

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Reference no: EM133121516

Question - Proposals L and K each cost $500,000, have 6-year lives, and have expected total cash flows of $750,000. Proposal L is expected to provide equal annual net cash flows of $125,000, while the net cash flows for Proposal K are as follows:

Year 1	$250,000
Year 2	200,000
Year 3	100,000
Year 4	90,000
Year 5	60,000
Year 6	50,000
	$750,000

Required - Determine the cash payback period for each proposal. Round your Proposal K answer to one decimal place.

Reference no: EM133121516

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Determine the cash payback period for each proposal

Reference no: EM133121516

Reference no: EM133121516

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