Belgravia Petroleum Inc. is trying to evaluate a new investment project with the following cash flows:

 Year     Cashflow 

0         -$1,200,000 

1           $252,000 

2          $340,000 

3          -$200,000 

4           $580,000 

5          $700,000 

6          -$200,000 

7           $280,000 

8          $288,000 

 

The required rate of return is 12%

Calculate Payback period

Answer rating: 100% (QA)

The payback period is the time it takes for an investment to generate enough cash flows to recover t... View the full answer