Purchase Solution

Payback period

Not what you're looking for?

Ask Custom Question

10. (TCO B, F) Sewart Associates is considering a project that has the following cash flow data. What is the project's payback?

Year Cash flow

0 ($1,000)

1 $300

2 $310

3 $320

4 $330

5 $340

2.11 years
2.34 years
2.60 years
2.89 years
3.21 years

Purchase this Solution
Solution Summary

The solution explains the calculation of payback periods.

Solution Preview

Payback is the time taken to recover the initial investment. The initial investment is $1,000. In ...

Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

View More Free Quizzes
Related BrainMass Solutions

  • Use of the Payback Period

    The payback period could be used to determine the payback period in various industry groupings.

  • Payback Period Methid and Discounted Payback Method

    12989 Payback Period Methid and Discounted Payback Method What are the differences between the payback period method and the discounted payback method? Which method is better in valuating investments?

  • Disadvantages of Cash Payback Method

    Payback period for project A is $3,000/ $1,000 = 3 years Payback period for project B is $2,000/ $800 = 2.5 years According to the cash payback method, project B is superior (payback period of 2.5 years against a payback period of 3 years for project

  • Payback and Net Present Value Methods for Dino Corporation

    Payback period = Initial investment/Expected return per year Investment A Payback period = 100,000/30,000 = 3.33 years Investment B Payback period = 50,000/25,000 = 2 years Investment C Payback period = 30,000/8,000 = 3.75 years Investment

  • Payback Period

    4 16,000 26,000 =2 + 5000 / 15000 5 30,000 56,000 56000 Payback period= 2.33 years Answer: Payback period Investment A: 4 years Investment B: 2.33 years Based on Payback criteria Investment

  • Dino Corporation

    Payback period = Initial investment/cash flow per year Investment A Payback period = 100,000/30,000 = 3.33 years Investment B Payback period = 50,000/25,000 = 2 years Investment C Payback period = 30,000/8,000 = 3.75 years Investment D

  • Payback period

    Yes the company should accept the project as the payback period of the project is less than the maximum payback period acceptable The expert determines the payback period for the project.

  • Payback period

    3782 Insight into the payback period method in accounting. What is the payback period method in accounting? Payback Period: The payback period is simply the time taken by the project to return the initial investment.

  • This posting addresses the Payback Period Ratio

    the payback period has ended.

  • Payback Period

    What is the project's simple, regular payback? Payback period is the period in which the initial investments of the project is recovered.

View More Related Solutions