Determining investment payback period


Nakamichi Bancorp has made an investment in banking software at a cost of $1,641,375. Management expects productivity gains and cost savings over the next several years. If, as a result of this investment, the firm is expected to generate additional cash flows of $688,682, $862,209, $516,059, and $332,210 over the next four years, what is the investment's payback period?

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Finance Basics: Determining investment payback period
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