What is the payback period for this gallery

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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.

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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?

Reference no: EM133178333

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