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QS 24-1 Payback period LO P1 Park Co. is considering an investment that requires immediate payment of $29,500 and provides expected cash inflows of $12,000 annually for four years. What is the investment's payback period?

Respuesta :

-957.48 is the investment's payback period.

Part 1:

Select Numerator: / Select Denominator: = Payback Period

Initial Investment / Annual Cash Flow = Payback Period

29500 /14400 = 2.05

Part 2

Present Value Coefficient 3.31231

Internal Rate of Return 8% /

530 = 6500 = 3.31231

Part 3:

Cash Flow Selection Chart Amount x PV Coefficient = Present Value

1 Annual Cash Flow Premium Value of Annuity 16800 2.48685 = 41,779.11 44 ​​Residual values ​​of 1 44 Value 01 1020 0.751313 = 7.643.4 444) Value of 1 10200 0.7513131 = 7.663. Cash Inflow 49,442.52

Immediate Cash Outflow -50400

Net Present Value -957.48

The payback period is defined as the number of years required to recover the original cash investment. In other words, the period during which a machine, plant, or other investment has generated sufficient net income to cover its investment costs.

Learn more about the payback period here: https://brainly.com/question/23149718

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