The Golden Goose is considering a project

The Golden Goose is considering a project with an initial cost of $46,700. The project will produce cash inflows of $10,000 a year for the first two years and $12,000 a year for the following three years. What is the payback period? 



honeyd


16-09-20 | 18:37:32

Year Cash Flows Cumulative Cash Flows
0 46,700 46,700
1 10000 36700
2 10000 26700
3 12000 14700
4 12000 2700
5 12000 9300

= 4+ (2700/12000)
=4.225 years

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