Flowserve Corporation is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. What is the payback period of this project? Round to one decimal place.
Added by Michael M.
Step 1
- Year 1: $350,000 - Year 2: $350,000 + $325,000 = $675,000 - Year 3: $675,000 + $150,000 = $825,000 - Year 4: $825,000 + $180,000 = $1,005,000 Show more…
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