What is the payback period

Assignment Help Accounting Basics

Reference no: EM13138454

ABC Company is adding a new product line that will require an investment of $1500000. The product line is estimated to generate cash inflows of $300,000 the first year, $250000 the second year, and $200,000 each year thereafter for ten more years. What is the payback period?

A: 7.25 years
B: 6.00 years
C: 2.73 years
D: 6.75 years

Reference no: EM13138454

Questions Cloud

Jones has an interest in history : Jones has an interest in history, particularly commercial history. In 2005 he purchased 500 old share certificates from an acquaintance who practised in the area of insolvency and liquidation.

Environment issues of consumer groups about razor brush : Any environment issues of consumer groups about Razor Brush

Select reviews on politics and society : Reflect on what you gained from each of the below reading assignments in relation to the responsibilities of each individual to contribute toward the development and improvement of society.

What proportion of chocolate bars weighs less than eight oz : A chocolate bar is considered underweight if it weighs less than 8.0 oz. What proportion of chocolate bars weighs less than 8.0 oz?

What is the payback period : ABC Company is adding a new product line that will require an investment of $1500000. The product line is estimated to generate cash inflows of $300,000 the first year, $250000 the second year, and $200,000 each year thereafter for ten more years...

Discuss how this influence takes effect : in which countries does taxation tend to have a major influence on published company accounts? Discuss how this influence takes effect and what the position is regarding the treatment of taxation in consolidated accounts.

Compare types of crisis : Compare types of crisis (natural disasters, school shootings, terrorism and military trauma), outlining their similarities and differences.

Topic is: same sex marriages or domestic partnerships : writing paper on :Topic is: Same Sex Marriages or Domestic Partnerships.

What is the contribution margin per unit : Padua Corp has sales of $400,000, a variable cost ratio of 60%, and a profit of $40,000. If 10,000 units were sold, what is the contribution margin per unit?

User Account

All Pages