Acompany is considering the purchase of a new piece of equipment for $117,200. predicted annual cash inflows from this investment are $53,000 (year 1), $21,500 (year 2), $26,500 (year 3), $20,500 (year 4) and $23,000 (year 5). the payback period is:
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Ответ:
3.79 years
Explanation:
In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:
In year 0 = $117,200
In year 1 = $53,000
In year 2 = $21,500
In year 3 = $26,500
In year 4 = $20,500
In year 5 = $23,000
If we sum the first 3 year cash inflows than it would be $101,000
Now we deduct the $101,000 from the $117,200 , so the amount would be $16,200 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it
And, the next year cash inflow is $20,500
So, the payback period equal to
= 3 years + $16,200 ÷ $20,500
= 3.79 years
In 3.79 years, the invested amount is recovered.
Ответ: