You have been presented with following data for Project A:

Project A Year Details $ 0 Cost 300,000

1 Net cash flow after tax 40,000

2 Net cash flow after tax 60,000

3 Net cash flow after tax 80,000

4 Net cash flow after tax 100,000

5 Net cash flow after tax 120,000

Required:

( a ) Calculate the Payback Period. (Show your workings)

. Payback Period - Project A Year Cash Inflow $

Cumulative Cash Inflow $ 1

2

culate the result):