Compute the payback period for investment


Wenro Company is considering the purchase of an asset for $90,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year.

Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net cash flows 40,000 30,000 40,000 70,000 29,000 209,000

Compute the payback period for this investment.

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Accounting Basics: Compute the payback period for investment
Reference No:- TGS050418

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