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ivolga24 [154]
3 years ago
5

Calculate the payback period for the following investment: Invest ($10,000). Cash flows in Yr1: 1,000; Yr2: 3,000; Yr3: 3,000; Y

r4: 3,000; Yr5: 100,000; Yr6: 250,000. Group of answer choices 6 years 4 years 5 years 3 years
Business
1 answer:
mihalych1998 [28]3 years ago
8 0

Answer:

4 years

Explanation:

The computation of the payback period is shown below:

In the payback, we analyze in how many years the invested amount is recovered

In year 0 = -$10,000

In year 1 = $1,000

In year 2 = $3,000

In year 3 = $3,000

In year 4 = $3,000

In year 5 = $100,000

In year 6 = $250,000

If we sum the first 4 year cash inflows than it would be $10,000

And, the initial investment is also $10,000

So, in 4 years, the investment amount is recovered

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