Question: What is the payback period for the project A? ( Assuming the company is using it straight line depreciation method.) Project A Project B Project
What is the payback period for the project A? (Assuming the company is using it straight line depreciation method.)
Project A | Project B | Project C | ||
Investment | $222 comma 000 $ 222,000 | 50$ comma 000$50,000$ | $222 comma 000 $ 222,000 | |
residual value | 0 | 22 comma 00022.000 | 26 comma 00026,000 | |
Net cash? streams: | ||||
Year 1 | 56 comma 00056.000 | 36 comma 00036.000 | 100 comma 000100.000 | |
2 years | 56 comma 00056.000 | 27 comma 00027.000 | 70 comma 00070.000 | |
3 years | 56 comma 00056.000 | 23 comma 00023,000 | 80 comma 00080.000 | |
4 years | 56 comma 00056.000 | 20 comma 00020.000 | 40 comma 00040.000 | |
5 years | 56 comma 00056.000 | 0 |
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