Question

Beyer Company is considering the purchase of an asset for $250,000. It is expected to produce...

Beyer Company is considering the purchase of an asset for $250,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year.

   Year 1 Year 2 Year 3 Year 4 Year 5 Total
  Net cash flows $ 50,000 $ 36,000 $ 60,000 $ 130,000 $ 24,000 $ 300,000
Year Cash inflow (outflow) Cumulative Net Cash Inflow (outflow)
0 $(250,000)
1
2
3
4
5
Payback period =

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