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elmer sporting goods is getting ready to produce a new line of golf clubs by investing $1.85 million. the investment will result in additional cash flows of $525,000, $812,500, and 1,200,000 over the next three years. what is the payback period for this project? (round your answer to two decimal places.)

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Elmer sporting goods project will payback period itself off in 2.43 years.

Elmer Sporting Goods has committed $1.85 million toward the production of a new line of golf clubs. Over the following three years, the investment will generate additional cash flows of $525,000, $812,500, and 1,200,000.

The payback period is the length of time needed for the investment to yield a profit. The investment cost left over for the first year is $1,850,000 less $525,000, which equals $1,325,000. The remaining investment cost for the second year is $512,500 ($1,325,000 - $812,500). The payback in the third year is 0.427, 2.43 years is the entire payback period.

To learn more about payback refer here:

https://brainly.com/question/13978071

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