- Capital Budgeting
- Capital Budgeting Ratios
- Payback Period and Discounted Payback Period
Accounting - Cash Payback Period
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If an asset cost of $16,000 has an expected useful life of 8 yrs, expected to have a $2000 salvage value and generates net income cash inflows of $2000 a year, the cash payback period is:
a. 8 yrs
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b. 7 yrs
c 6 yrs
d. 5 yrs
This solution provides the correct answer with explanation to the cash payback period multiple choice question listed.