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An investment project provides cash inflows of $3,000 per year for five years. What is the payback period if the project requires $5,000 at the beginning of the project?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 28P

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Question

An investment project provides cash inflows of $3,000 per year for five years. What is the payback period if the project requires $5,000 at the beginning of the project?

Definition Definition Transfer of funds into a company by any third party, which may happen due to any operational, investing, and financing activities. The cash inflow includes payments made by customers or investments made by the investors into the company by purchasing its equity.

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