Register
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
14.3k views
0 votes
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
4.4k points

1 Answer

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

260000- 150000 = 110000

6 years payback period
User JJC
by
4.3k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

4.7m questions

6.1m answers

Other Questions

Which of the following should be considered last when searching for financing? Family members Banks Commercial finance companies Credit cards I'm guessing it's C but idk
Explain the similarities and differences between how both producers and consumer use money
edna kropp's gross income for a year included salary, $12,400; commission, $27,750; intrerest, $440. Her adjustment to income were payment to a retirement plan, $2,000, and a penalty for withdrawing savings
Your assessment tool contains rich data about child progress in language and literacy but no details to explain the differences between children. You decide to: A. Replace the tool with another B. Analyze
When goods are produced at the lowest possible cost, an economy is said to have achieved:?
Link Copied!