Sandhill Company is considering the purchase of an investment of $266700. Data related to the investment...

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Sandhill Company is considering the purchase of an investment of $266700. Data related to the investment are as follows: Year 1 cash flows Year 2 cash flows Year 3 cash flows Year 4 cash flows Salvage value of new investment Proceeds from disposal of old investment Investment in working capital Tax Rate $140000 $144000 $132000 $137000 $27000 $24000 $12500 21% With a discount rate of 9%, what is the payback period with non-uniform cash flows of the investment? Sandhill Company is considering the purchase of an investment of $266700. Data related to the investment are as follows: Year 1 cash flows Year 2 cash flows Year 3 cash flows Year 4 cash flows Salvage value of new investment Proceeds from disposal of old investment Investment in working capital Tax Rate $140000 $144000 $132000 $137000 $27000 $24000 $12500 21% With a discount rate of 9%, what is the payback period with non-uniform cash flows of the investment?

Answer rating: 100% (QA)

To calculate the payback period with nonuniform cash flows you need to find out in which year the cu... View the full answer