Calculate the payback period for a set of cash flows
Not what you're looking for? Search our solutions OR ask your own Custom question.
What is the payback period for the following set of cash flows?
Year 0 Cash Flow is -$2,500;
year 1 cash flow is $300;
year 2 cash flow is $1500;
year 3 cash flow is $900;
year 4 cash flow is $300
https://brainmass.com/business/payback-period-and-discounted-payback-period/calculate-the-payback-period-for-a-set-of-cash-flows-2757
Solution Preview
In year 0 the outflow is = $2,500
In year 1 the inflow is = $300, balance ...
Solution Summary
The solution shows the outflows and inflows for each year, and then explains the length of the payback period.
$2.49