Compute the payback period for an investment with the following net cash flows. (Round your answer to one decimal place.) Net Cash Flows per Year $ (120,000) Cumulative Net Cash Flows $ (120,000) Year Initial investment 1234 1. 2. 3. 4. 5. 6. 12,000 (108,000) 22,000 (86,000) 22,000 (64,000) 47,200 (16,800) 42,000 25,200 42,000 67,200 Payback period years

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
None
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
$ (120,000)
12,000
22,000
Cumulative Net
Cash Flows
$ (120,000)
(108,000)
(86,000)
22,000
(64,000)
47,200
(16,800)
42,000
25,200
42,000
67,200
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 $ (120,000) 12,000 22,000 Cumulative Net Cash Flows $ (120,000) (108,000) (86,000) 22,000 (64,000) 47,200 (16,800) 42,000 25,200 42,000 67,200 Payback period years
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Capital Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education