Year 0 1 2 3 4 5 6 Cash flow -110000 30000 40000 20000 70000 20000 20000 Given the cash flows in the table above, calculate the payback period assuming the cash flows in years 1 to 4 occur evenly throughout the year

Finance Aug 24, 2020

Year 0 1 2 3 4 5 6

Cash flow -110000 30000 40000 20000 70000 20000 20000

Given the cash flows in the table above, calculate the payback period assuming the cash flows in years 1 to 4 occur evenly throughout the year. The required rate of return is 12%.

Answer in years accurate to two decimal places.

Expert Solution

Payback period = 3.29 years

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