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.
Central
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?