ABC Company is considering a project that has the following cash flow data.  Year                             0                 1                2               3  Cash flows           -$1,147        $500          $500        $537 What is the project's payback period? (in year) Group of answer choices 2.27 2.29 2.25 2.23 2.31

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter7: Valuation Of Stocks And Corporations
Section: Chapter Questions
Problem 23SP
icon
Related questions
Question

ABC Company is considering a project that has the following cash flow data. 

Year                             0                 1                2               3 
Cash flows           -$1,147        $500          $500        $537

What is the project's payback period? (in year)

Group of answer choices
2.27
2.29
2.25
2.23
2.31
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 3 images

Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage