you are considering buying a pie maker, your boss tells you that if it can pay itself back within 4 years you should buy it. the pie maker will have an initial outlay of 120,000 the first year cash flows will be -20,000, second year will be 60,000, third year will be 70,000, fourth year will be 80,000 and the fifth year will be 100,000 what is the payback period?

Answer rating: 100% (QA)

To calculate the payback period we need to determine the time it takes for the cumulative cash flows ... View the full answer