Compute the payback period for this investment

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Problem - Beyer Company is considering the purchase of an asset for $380,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year.

 

Year 1

Year 2

Year 3

Year 4

Year 5

Total

Net Cash flows

$90,000

$50,000

$70,000

$250,000

$11,000

$471,000

Compute the payback period for this investment.

Reference no: EM131559527

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