Explore BrainMass

Explore BrainMass

    Calculate the payback period for a set of cash flows

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

    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

    © BrainMass Inc. brainmass.com March 4, 2021, 5:37 pm ad1c9bdddf
    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.

    $2.19

    ADVERTISEMENT