Explore BrainMass
Share

Capital Budgeting : Cash Flow and Payback

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

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

© BrainMass Inc. brainmass.com December 20, 2018, 2:20 am ad1c9bdddf
https://brainmass.com/business/discounted-cash-flows-model/capital-budgeting-cash-flow-and-payback-217587

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.

$2.19