Solution-Compute the payback period of this project

Compute the payback period of this project

Reference no: EM132717976

Problem - Foster Manufacturing is analyzing a capital investment project that is forecast to produce the following cash flows and net income:

Year	After-Tax Cash Flows	Net Income
0	$(20,000)	$0
1	6,000	2,000
2	6,000	2,000
3	8,000	2,000
4	8,000	2,000

Required - Compute the payback period of this project?

a. 2.5 years.

b. 2.6 years.

c. 3.0 years.

d. 3.3 years.

Reference no: EM132717976

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Compute the payback period of this project

Reference no: EM132717976

Reference no: EM132717976

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