Sikes Hardware is adding a new product line that will require an investment of $1,520,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $315,000 the first year, $270,000 the second year, and $215,000 each year thereafter for eight years. The investment has no residual value. Compute the payback period. First enter the formula, then calculate the payback period. (Round your answer to two decimal places.) Full years + 5 Amount to complete recovery in next year Projected cash inflow in next year 215000 ) = Payba year

Sikes Hardware is adding a new product line that will require an investment of $1,520,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $315,000 the first year, $270,000 the second year, and $215,000 each year thereafter for eight years. The investment has no residual value. Compute the payback period. First enter the formula, then calculate the payback period. (Round your answer to two decimal places.) Full years + 5 Amount to complete recovery in next year Projected cash inflow in next year 215000 ) = Payba year

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2PB: Markoff Products is considering two competing projects, but only one will be selected. Project A...

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