Reference no: EM133178333
Question - The CWB Company is considering opening a new gallery which is expected to generate the following cash flows over 5 years. The CWB Company is considering opening a new gallery which is expected to generate the following cash flows over 5 years.
Central
Investment cost in Year 0, HKD 460078
Cash Flows in Year 1, HKD 70000
Cash Flows in Year 2, HKD 100000
Cash Flows in Year 3, HKD 130000
Cash Flows in Year 4, HKD 140000
Cash Flows in Year 5, HKD 140000
Salvage Value in Year 5, HKD 100000
Assume that cash flow is uniform within each year, what is the payback period for this gallery?