Question

23 There is a project with the following cash flows : Year Cash Flow 0 −$29,000...

23

There is a project with the following cash flows :

Year Cash Flow
0 −$29,000
1 8,500
2 8,450
3 7,850
4 6,600


What is the payback period?

Multiple Choice

  • 3.93 years

  • 3.64 years

  • 4.00 years

  • 2.46 years

  • 3.86 years

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Homework Answers

Answer #1

Solution:

The payback period of the project is = 3.64 years.

Thus the solution is option 2 = 3.64 years

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

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