Scribd Logo
Upload

Welcome to Scribd!

  • Payback Period

    Uploaded by

    Abhay Khera
    29 views2 pages
    This document outlines the cash flows for a project over 5 years, showing an initial cash outflow of $20,000 and annual cash inflows of $12,000. The payback period, the time required for cumulative cash flows to recover the initial investment, is calculated to be between 1 and 2 years. Specifically, $12,000 is recovered in the first year and the remaining $8,000 is recovered in 8 months into the second year, for a total payback period of 1 year and 8 months.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document outlines the cash flows for a project over 5 years, showing an initial cash outflow of $20,000 and annual cash inflows of $12,000. The payback period, the time required for cumulative cash flows to recover the initial investment, is calculated to be between 1 and 2 years. Specifically, $12,000 is recovered in the first year and the remaining $8,000 is recovered in 8 months into the second year, for a total payback period of 1 year and 8 months.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    29 views2 pages

    Payback Period

    Uploaded by

    Abhay Khera
    This document outlines the cash flows for a project over 5 years, showing an initial cash outflow of $20,000 and annual cash inflows of $12,000. The payback period, the time required for cumulative cash flows to recover the initial investment, is calculated to be between 1 and 2 years. Specifically, $12,000 is recovered in the first year and the remaining $8,000 is recovered in 8 months into the second year, for a total payback period of 1 year and 8 months.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Cash outflow Cash inflow per year YEAR---Cash inflow Cummulative Cash flow

    20000 12000 1 12000 12000 2 12000 24000 3 12000 36000 4 12000 48000 512000 60000

    Payback period will be somewhere between 1 and 2nd year are made evenly throughout the year . year 1 : 12000 recovered Year 2 :8000 more to be recovered which will be recovered i 8000/12000=0.666 years or 8 months So total payback period = 1year 8 months

    ewhere between 1 and 2nd year . Assuming sales t the year .

    overed which will be recovered in 8 months year 8 months

    You might also like