Calculating payback period in the given case
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Sewart Associates is considering a project that has the following cash flow data. What is the project's payback?
Year Cash flow
0 ($1000)
1 $300
2 $310
3 $320
4 $330
5 $340
a. 2.11 years
b. 2.34 years
c. 2.60 years
d. 2.89 years
e. 3.21 years.
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Solution describes the steps to calculate payback period in the given case.
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Solution
Year Cash inflow Total cash inflow
1 300 300
2 310 ...
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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