Martin Brother is considering investing $20,000 in a project with the following cash revenues and expenses:
$\begin{array}{lll}&&\text { Cash Expenses \& }\&\text { Revenues }&\text { Depreciation }\
\text { Year 1 } & \$ 8,000 & \$ 8,000 \
\text { Year 2 } & \$ 12,000 & \$ 8,000 \
\text { Year 3 } & \$ 15,000 & \$ 9,000 \
\text { Year 4 } & \$ 20,000 & \$ 10,000 \
\text { Year 5 } & \$ 20,000 & \$ 10,000
\end{array}$
-Refer to the Figure.Assume straight-line depreciation over five years.What would be the payback period for this investment?

Question

Martin Brother is considering investing $20,000 in a project with the following cash revenues and expenses:
 $\begin{array}{lll}&&\text { Cash Expenses \& }\&\text { Revenues }&\text { Depreciation }\
\text { Year 1 } & \$ 8,000 & \$ 8,000 \
\text { Year 2 } & \$ 12,000 & \$ 8,000 \
\text { Year 3 } & \$ 15,000 & \$ 9,000 \
\text { Year 4 } & \$ 20,000 & \$ 10,000 \
\text { Year 5 } & \$ 20,000 & \$ 10,000
\end{array}$
-Refer to the Figure.Assume straight-line depreciation over five years.What would be the payback period for this investment?

Quizplus · Accepted Answer

The Answer of Martin Brother is considering investing $20,000 in a project with the following cash revenues and expenses:
 $\begin{array}{lll}&&\text { Cash Expenses \& }\&\text { Revenues }&\text { Depreciation }\
\text { Year 1 } & \$ 8,000 & \$ 8,000 \
\text { Year 2 } & \$ 12,000 & \$ 8,000 \
\text { Year 3 } & \$ 15,000 & \$ 9,000 \
\text { Year 4 } & \$ 20,000 & \$ 10,000 \
\text { Year 5 } & \$ 20,000 & \$ 10,000
\end{array}$
-Refer to the Figure.Assume straight-line depreciation over five years.What would be the payback period for this investment?

Martin Brother Is Considering Investing $20,000 in a Project with the Following