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Following information is given of ABC Ltd. Cash Outflow $150,000 Annual Cash inflow First 4 years $25,000 Next 6 years $10,000 Estimated life 10 years Required: Calculate Payback period
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Following information is given of ABC Ltd.

Cash Outflow $150,000
Annual Cash inflow
First 4 years $25,000
Next 6 years $10,000
Estimated life 10 years
Required: Calculate Payback period

User Sandcar
by
8.2k points

1 Answer

3 votes
(25000x4) + (10000x6) = 260,000

260000- 150000 = 110000

6 years payback period
User JJC
by
8.7k points
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