janes clothing inc is evaluating two capital investment proposals for a retail outlet, each requiring an investment
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Question:
janes clothing inc is evaluating two capital investment proposals for a retail outlet, each requiring an investment of $225,000 and each with an eightyear life and expected total net cash flows of $360,000 location 1 is expected to provide equal annual net cash flows of $45,000, and location 2 is expected to have the following unequal annual net cash flow:
year 1 $101,000
year 2 77,000
year 3 47,000
year 4 43,000
year 5 32,000
year 6 24,000
year 7 19,000
year 8 17,000
Determine the cash payback period for both location proposals.
Location 1 | years |
Location 2 | years |
Related Book For
Financial & Managerial Accounting
ISBN: 978-1337902663
15th edition
Authors: Carl Warren, Jefferson P. Jones, William B. Tayler
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