What is the payback period for this gallery

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Reference no: EM133178354

Question - 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 460,003

Cash Flows in Year 1, HKD 70,000

Cash Flows in Year 2, HKD 100,000

Cash Flows in Year 3, HKD 130,000

Cash Flows in Year 4, HKD 140,000

Cash Flows in Year 5, HKD 140,000

Salvage Value in Year 5, HKD 100,000

Required - Assume that cash flow is uniform within each year, what is the payback period for this gallery?

Reference no: EM133178354

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