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Sagot :
Answer:
It will take 3 years and 270 days to pay back the investment.
Explanation:
The payback period is the time required for the discounted cash flow to cover the initial investment. We need to use the following formula on each cash flow:
PV= Cf / (1+i)^n
Year 1= 0 - 318,000= -318,000
Year 2= (47,000 / 1.155^2) - 318,000= - 282,768.28
Year 3= (198,000 / 1.155^3) - 282,768.28= -93,697,07
Year 4= (226,000 / 1.155^4) - 93,697.07= 33,296.14
To be more accurate:
(93,697.07 / 126,993.21)= 0.74*365= 270
It will take 3 years and 270 days to pay back the investment.
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