Compute the payback period for an investment with the following net cash flows. (Round your answer to one decimal place.) Year Initial investment 1. 2. 3. 4. 5. 6. Net Cash Flows per Year $ (114,000) Cumulative Net Cash Flows $ (114,000) 11,400 21,400 (102,600) (81,200) 21,400 (59,800) 39,100 (20,700) 41,400 20,700 41,400 62,100 Payback period years

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Compute the payback period for an investment with the following net cash flows. (Round your answer to one decimal place.)
Year
Initial investment
1.
2.
3.
4.
5.
6.
Net Cash Flows
per Year
$ (114,000)
Cumulative Net
Cash Flows
$ (114,000)
11,400
21,400
(102,600)
(81,200)
21,400
(59,800)
39,100
(20,700)
41,400
20,700
41,400
62,100
Payback period
years
Transcribed Image Text:Compute the payback period for an investment with the following net cash flows. (Round your answer to one decimal place.) Year Initial investment 1. 2. 3. 4. 5. 6. Net Cash Flows per Year $ (114,000) Cumulative Net Cash Flows $ (114,000) 11,400 21,400 (102,600) (81,200) 21,400 (59,800) 39,100 (20,700) 41,400 20,700 41,400 62,100 Payback period years
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