Proposals L and K each cost $600,000, have 6-year lives, and have expected total cash flows of $720,000. Proposal L is expected to provide equal annual net cash flows of $170,000, while the net cash flows for Proposal K are as follows:
Determine the cash payback period for each proposal. Round your answers to two decimal places.

Question

Proposals L and K each cost $600,000, have 6-year lives, and have expected total cash flows of $720,000. Proposal L is expected to provide equal annual net cash flows of $170,000, while the net cash flows for Proposal K are as follows:  
Determine the cash payback period for each proposal. Round your answers to two decimal places.

Quizplus · Accepted Answer

The Answer of Proposals L and K each cost $600,000, have 6-year lives, and have expected total cash flows of $720,000. Proposal L is expected to provide equal annual net cash flows of $170,000, while the net cash flows for Proposal K are as follows:  
Determine the cash payback period for each proposal. Round your answers to two decimal places.

Proposals L and K Each Cost $600,000, Have 6-Year Lives