Question

Cash Payback Period A project has estimated annual net cash flows of $27,000. It is estimated to cost $140,400. Determine the cash payback period. Round your answer to one decimal place. years

Answer 1

Answer: 5.2 years

Step-by-step explanation:

The payback period is calculated by dividing the initial investment by the annual net cash inflows.

So for this project, the cash payback period would be:

$140,400 / $27,000 = 5.2 years