A capital investment requiring a single initial cash outflow is forecast to have an operating profit of $50,000 per year for five years There is no salvage value at the end of the five years If the investment has an IRR of 17 , calculate its payback period ...

Since the investments IRR is 17 th ...

A capital investment requiring a single initial cash outflow is forecast to have an operating profit of

Question:

A capital investment requiring a single initial cash outflow is forecast to have an operating profit of $50,000 per year for five years. There is no at the end of the five years. If the investment has an IRR of 17%, calculate its payback period.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...