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Compute the payback period for this investment

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Question: 1. A company is considering purchasing equipment costing $75,000. Future annual net cash flows from this equipment are $30,000, $25,000, $15,000, $10,000, and $5,000. The payback period is

(a) 4 years,

(b) 3.5 years, or

(c) 3 years.

2. Wenro Company is considering the purchase of an asset for $90,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Compute the payback period for this investment.

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Reference no: EM131539877

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