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Problem -

Year

Investment

Cash Inflow

1

$58,000

$4,000

2

$8,000

$8,000

3

 

$11,000

4

 

$14,000

5

 

$17,000

6

 

$15,000

7

 

$13,000

8

 

$11,000

9

 

$10,000

10

 

$10,000

Required:

1. Determine the payback period of the investment.

2. Would the payback period be affected if the cash inflow in the last year were several times as large?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92565527
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