Respuesta :

The payback period of the project that Mansi Inc. is considering given its cash flow data is 2.36 years.

What is the payback?

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows.

  • Amount invested = -750
  • Amount recovered in year 1 = -750 + 300 = -450
  • Amount recovered in year 2 = -450 + 325 = -125
  • Amount recovered in year 3 = -125 /350 = 36

payback = 2.36 years

Here is he complete question:

Mansi Inc. is considering a project that has the following cash flow data. What is the project's payback?

Year 0 1 2 3

Cash flows -$750 $300 $325 $350

To learn more about the payback period, please check: https://brainly.com/question/25716359

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