Ask Question
2 September, 07:18

An investment proposal with an initial investment of $100,000 generates annual net cash inflow of $20,000 for a period of 10 years. The project has a net present value of $10,000. What is this investment proposal's payback period?

+5
Answers (1)
  1. 2 September, 10:12
    0
    5 years

    Explanation:

    Initital investment $100,000

    Cash inflows 1-5 (20,000*5) ($100,000)

    The payback period for this investment project is 5 years.

    or

    100,000/20,000=5 years
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “An investment proposal with an initial investment of $100,000 generates annual net cash inflow of $20,000 for a period of 10 years. The ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers