Answered: A project has estimated annual net cash…

A project has estimated annual net cash flows of $54,000. It is estimated to cost $270,000. Determine the cash payback period in years. If required, round your answer to one decimal place.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...

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A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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A project has estimated annual net cash flows of $54,000. It is estimated to cost $270,000.

Determine the cash payback period in years. If required, round your answer to one decimal place.

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