Project I 2 of -1000 400 600 200 200 To00 1200 1400 1500 Project 2 5 -1000 400 600 1100 600 700 100 500 10 ססך1 FORMULA: payback = years before full t unrecovered amount at the Start OF period %3D me covery cash Flow during the period Project I pay back 2 +_0 2 years %3D 200 Project 2 2 + 500 600 2.85years or 2 years 9 months payback %3D %3D

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

What is the answer 

Project I
4
200
| 200 1400 1900
2
3
400
200
To00
-1000
100
Project 2
400
600
1100
600
700
-1000
100
560
ססך1
2400
FORMULA:
payback =years before pull t unrecovered amount at the
%3D
re covery
Start Of period
cash Flow during the period
Project I
payback
= 2+
2 years
%31
200
Project 2
payback= 2 + 500
600
12.8years or
2 years 9 months
%3D
Transcribed Image Text:Project I 4 200 | 200 1400 1900 2 3 400 200 To00 -1000 100 Project 2 400 600 1100 600 700 -1000 100 560 ססך1 2400 FORMULA: payback =years before pull t unrecovered amount at the %3D re covery Start Of period cash Flow during the period Project I payback = 2+ 2 years %31 200 Project 2 payback= 2 + 500 600 12.8years or 2 years 9 months %3D
Project I
4
200
| 200 1400 1900
2
3
400
200
To00
-1000
100
Project 2
400
600
1100
600
700
-1000
100
560
ססך1
2400
FORMULA:
payback =years before pull t unrecovered amount at the
%3D
re covery
Start Of period
cash Flow during the period
Project I
payback
= 2+
2 years
%31
200
Project 2
payback= 2 + 500
600
12.8years or
2 years 9 months
%3D
Transcribed Image Text:Project I 4 200 | 200 1400 1900 2 3 400 200 To00 -1000 100 Project 2 400 600 1100 600 700 -1000 100 560 ססך1 2400 FORMULA: payback =years before pull t unrecovered amount at the %3D re covery Start Of period cash Flow during the period Project I payback = 2+ 2 years %31 200 Project 2 payback= 2 + 500 600 12.8years or 2 years 9 months %3D
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Trading
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.
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