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skelet666 [1.2K]
2 years ago
11

Susmel Inc. is considering a project that has the following cash flow data. What is the project's payback

Business
1 answer:
tekilochka [14]2 years ago
7 0

Answer: 2.5 years

Explanation:

The payback period of a project as the term implies, is the amount of time it takes for a project's cashflows to pay off its original outlay.

The formula is;

= Year before payback + Amount remaining/ Cashflow in year of Payback

Year 1 + 2 = 150 + 200 = $350

Amount remaining = 500 - 350 = $150

Payback period = 2 + 150/300

= 2.5 years

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