Get personalized and accurate responses to your questions with IDNLearn.com. Our experts are ready to provide in-depth answers and practical solutions to any questions you may have.
Sagot :
The payback period on the following project is 2.81 years
We want to see how many years it will take us to recover the initial cash outlay. So, we need to find out how many years it takes to make $54 K.
After 1 year = $21 K
After 2 yrs = 21 + 14 = $35K
At the end of year 2, we are only $19 K away from recovering the initial outlay ($54-$35 = $19 K).
As you can see, in year 3 we make $23.4 thousand.
This surpasses the amount needed to recover the IO.
Therefore, we know that the payback period will be somewhere between year 2 and 3.
To find the exact point in the year, we divide the remaining amount to payback by the total amount received for the year.
19/23.4 = .81Thus, the payback period is 2.81 years.
NPV ($4,881.33)
IRR 3.94%
PI 0.91
Payback 2.81
In easy terms, the payback length is calculated via way of means of dividing the price of the funding via way of means of the yearly coins waft till the cumulative coins waft is positive, that is the payback year. Payback length is normally expressed in years.
Learn more about payback period here:
https://brainly.com/question/16999673
#SPJ4
Thank you for participating in our discussion. We value every contribution. Keep sharing knowledge and helping others find the answers they need. Let's create a dynamic and informative learning environment together. Your search for answers ends at IDNLearn.com. Thank you for visiting, and we hope to assist you again soon.
