Determine the no-return payback period

Reference no: EM13205099

Julian Browne, owner of Clear Interior Environments, purchased an air scrubber, HEPA vacuum, and other equipment for mold removal for $15,000 eight months ago. Net cashflows were $-2000 for each of the first two months, followed by $1000 per month for months 3 and 4. For the last 4 months, a contract generated a net $6000 per month. Julian sold the equipment yesterday for $3000 to a friend.

Determine (a) the no-return payback period and (b) the 18% per year payback period.

Reference no: EM13205099

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