Beyer Company is considering buying an asset for $380,000. It is expected to produce the following net cash flows.
Net cash flows
Year 1 Year 2 Year 3 Year 4 Year 5
$90,000 $50,000 $70,000 $250,000 $11,000
Compute the payback period for this investment.
Note: Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places.
Year Net Cash Flows Cumulative Cash Flows
Initial investment $ (380,000)
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Payback period =