Respuesta :
Answer:
3.5 years
Explanation:
The computation of the payback period is given below:
Given that
In year 0 = $32,000
In year 0 = $12,000
In year 1 = $8,000
In year 2 = $8,000
In year 3 = $20,000
In year 4 = $16,000
In year 5 = $16,000
Based on the above information
Now If we add the first 3 year cash inflows then it is $36,000
After this, we deduct the $36,000 from the $44,000 ($32,000 + $12,000) so the remaining amount would be $8,000 now if we added the fourth year cash inflow the total amount would be more than the initial investment.
Therefore, we deduct it
Now, the next year cash inflow is $16,000
Thus, the payback period is
= 3 years + $8,000 ÷ $16,000
= 3.5 yeas
