Proposals A and B each cost $600,000 and have 5-year lives. Proposal A is expected to provide equal annual net cash flows of $159,000, while the net cash flows for Proposal B are as follows: $$\begin{array} { l l }
\text { Year 1 } & \$ 150,000 \
\text { Year 2 } & 140,000 \
\text { Year 3 } & 110,000 \
\text { Year 4 } & 150,000 \
\text { Year 5 } &{ 50,000 }\& { \$ 600,000 }
\end{array}$$ Determine the cash payback period for each proposal. Round answers to two decimal places.

Question

Proposals A and B each cost $600,000 and have 5-year lives. Proposal A is expected to provide equal annual net cash flows of $159,000, while the net cash flows for Proposal B are as follows: $$\begin{array} { l l } 
\text { Year 1 } & \$ 150,000 \
\text { Year 2 } & 140,000 \
\text { Year 3 } & 110,000 \
\text { Year 4 } & 150,000 \
\text { Year 5 } &{ 50,000 }\& { \$ 600,000 }
\end{array}$$ Determine the cash payback period for each proposal. Round answers to two decimal places.

Quizplus · Accepted Answer

The Answer of Proposals A and B each cost $600,000 and have 5-year lives. Proposal A is expected to provide equal annual net cash flows of $159,000, while the net cash flows for Proposal B are as follows: $$\begin{array} { l l } 
\text { Year 1 } & \$ 150,000 \
\text { Year 2 } & 140,000 \
\text { Year 3 } & 110,000 \
\text { Year 4 } & 150,000 \
\text { Year 5 } &{ 50,000 }\& { \$ 600,000 }
\end{array}$$ Determine the cash payback period for each proposal. Round answers to two decimal places.

Proposals a and B Each Cost $600,000 and Have 5-Year