Proposals M and N each cost $550,000, have 6-year lives, and have expected total cash flows of $750,000.Proposal M is expected to provide equal annual net cash flows of $125,000, while the net cash flows for Proposal N are as follows:
Determine the cash payback period for each proposal.

Question

Quizplus · Accepted Answer

The Answer of Proposals M and N each cost $550,000, have 6-year lives, and have expected total cash flows of $750,000.Proposal M is expected to provide equal annual net cash flows of $125,000, while the net cash flows for Proposal N are as follows:
Determine the cash payback period for each proposal.

Proposals M and N Each Cost $550,000, Have 6-Year Lives