120k views
2 votes
Proposals L and K each cost $600,000, have 6-year lives, and have expected total cash inflows of $720,000. Proposal L is expected to provide equal annual net cash flows of $170,000, while the net cash flows for Proposal K are as follows:

Year 1 $250,000
Year 2 200,000
Year 3 100,000
Year 4 50,000
Year 5 100,000
Year 6 20,000
Total $720,000
Determine the cash payback period for each proposal. Round your answers to two decimal places, if necessary.

User Joselufo
by
4.0k points

1 Answer

2 votes

Answer:

Year 4 50,000

Step-by-step explanation:

User Nicolas Raoul
by
4.3k points