Computing cash payback period

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Reference no: EM133198203

Pina Colada Corp. is considering the purchase of a piece of equipment that costs $15,000.Projected net annual cash flows over the project's life are:

Year Net Annual Cash Flow

1 $2,000

2 10,000

3 25,000

4 11,000

The cash payback period is:

a. 1.40 years.

b. 2.67 years.

c. 2.12 years.

d. 2.93 years

Reference no: EM133198203

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