Nakamichi Bancorp has made an investment in banking software at a cost of $1,430,438. Management expects productivity gains and cost savings over the next several years. If, as a result of this investment, the firm is expected to generate additional cash flows of $667,344, $725,331, $475,138, and $343,237 over the next four years, what is the investment’s payback period? (Round answer to 2 decimal places, e.g. 15.25.) Payback period is   years

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Nakamichi Bancorp has made an investment in banking software at a cost of $1,430,438. Management expects productivity gains and cost savings over the next several years. If, as a result of this investment, the firm is expected to generate additional cash flows of $667,344, $725,331, $475,138, and $343,237 over the next four years, what is the investment’s payback period? (Round answer to 2 decimal places, e.g. 15.25.)

Payback period is
 
years
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