Answered

Find the best answers to your questions with the help of IDNLearn.com's knowledgeable users. Get the information you need quickly and accurately with our reliable and thorough Q&A platform.

An investment project provides cash inflows of $705 per year for eight years. What is the project payback period if the initial cost is $1,900

Sagot :

Zvikoidn

Answer:

2 years and 8 months

Explanation:

The payback period is the length of time required for thee total cashflows to equal the Initial Capital Investment.

Payback = $1,900

Therefore,

$1,900 = $705 + $705 + $490

Which is 2 years and 8 months ($490/ $705 × 12)

Conclusion :

The project payback period is 2 years and 8 months

We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. IDNLearn.com has the solutions to your questions. Thanks for stopping by, and see you next time for more reliable information.