Yes, look for help, your store getting robbed!
Answer:
5.98 years
Explanation:
The computation of the payback period is shown below:
In year 0 = -$1,530,000
In year 1 = $305,000
In year 2 = $270,000
In year 3 = $240,000
In year 4 = $240,000
In year 5 = $240,000
In year 6 = $240,000
In year 7 = $240,000
In year 8 = $240,000
In year 9 = $240,000
In year 10 = $240,000
If we added the first 5 year cash inflows than it would be $1,295,000
Now we have to subtract the $1,295,000 from the $1,530,000 , so the amount would be $235,000 as if we sum the six year cash inflow so the total amount is exceeded to the initial investment. So, we subtract it
And, the next year cash inflow is $240,000
So, the payback period equal to
= 5 years + $235,000 ÷ $240,000
= 5.98 years
