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madam [21]
3 years ago
6

An investment project provides cash inflows of $705 per year for eight years. What is the project payback period if the initial

cost is $1,900
Business
1 answer:
attashe74 [19]3 years ago
7 0

Answer:

2 years and 8 months

Explanation:

The payback period is the length of time required for thee total cashflows to equal the Initial Capital Investment.

Payback = $1,900

Therefore,

$1,900 = $705 + $705 + $490

Which is 2 years and 8 months ($490/ $705 × 12)

Conclusion :

The project payback period is 2 years and 8 months

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