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What is the payback period for this investment

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Reference no: EM133010631

Question - Ambinu Flower Company provides flowers and other nursery products for decorative purposes in medium to large sized restaurants and businesses. The company has been investigating the purchase of a new specially equipped van for deliveries. The van has a value of $133,750 with a four-year life. The expected additional cash inflows are: $52,500 for year 1, $65,000 for year 2. $32.500 for year 3, and $46,000 for year 4. What is the payback period for this investment?

Reference no: EM133010631

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