Question

40. A project has the following cash flows. What is the payback Year Cash Flow 0 -$31,000 1 15,600 2 7,200 3 8,700 4 9,100 a. 2.954 years b. 2.943 years c. 2.931 years d. 2.920 years e. 2.897 years f. 2.885 years g. 2.874 years -31,000 15,600 -15,400.00 7,200 -8200 +8700 500 pay back = 3 + \frac{500}{870}

          40.
A project has the following cash flows. What is the payback
Year	Cash Flow
0	-$31,000
1	15,600
2	7,200
3	8,700
4	9,100
a. 2.954 years
b. 2.943 years
c. 2.931 years
d. 2.920 years
e. 2.897 years
f. 2.885 years
g. 2.874 years
-31,000
15,600
-15,400.00
7,200
-8200
+8700
500
pay back = 3 + \frac{500}{870}

40.
A project has the following cash flows. What is the payback
Year Cash Flow
0 -31,000
1 15,600
2 7,200
3 8,700
4 9,100
a. 2.954 years
b. 2.943 years
c. 2.931 years
d. 2.920 years
e. 2.897 years
f. 2.885 years
g. 2.874 years
-31,000
15,600
-15,400.00
7,200
-8200
+8700
500
pay back = 3 + (500)/(870)

Added by David C.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Jennifer Hudspeth

Step 1

Using a discount rate of 0%, the present value of each cash flow is: Year 0: PV = -$31,000 / (1 + 0%)^0 = -$31,000 Year 1: PV = $15,600 / (1 + 0%)^1 = $15,600 Year 2: PV = $7,200 / (1 + 0%)^2 = $7,200 Year 3: PV = $8,700 / (1 + 0%)^3 = $8,700 Show more…

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Fall 201 40. A project has the following cash flows. What is the paysck Year 0 Cash Flow 1 -$31,000 2 $15,600 3 $7,200 4 $8,700 9,100 a. 2.954 years b. 2.943 years c. 2.931 years d. 2.920 years e. 2.897 years f. 2.885 years g. 2.874 years $31,600 $15,600 oo-aahS1- oort -8200 00t8+ 500 500 87 z7j2~q hmd