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    Capital Budgeting : Cash Flow and Payback

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    Tapley Dental Associates is considering a project that has the following cash flow data. What is the project's payback?

    Year: 0 1 2 3 4 5
    Cash flows: -$1,000 $300 $310 $320 $330 $340

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    Solution Preview

    PAYBACK = point in time where the inital investment is completely recovered:

    Recovery ...

    Solution Summary

    In a brief, concise response, this solution calculates the project's payback using step by step calculation.