Safe Driving School is considering purchasing new autos costing $235,000.The company's management has estimated that the autos will generate cash flows as follows:
$$\begin{array} { l l }
\text { Year 1 } & \$ 80,000 \
\text { Year 2 } & \$ 85,000 \
\text { Year 3 } & \$ 95,000 \
\text { Year 4 } & \$ 45,000
\end{array}$$ Considering the residual value is zero,calculate the payback period.Round to one decimal place

Question

Safe Driving School is considering purchasing new autos costing $235,000.The company's management has estimated that the autos will generate cash flows as follows:
 $$\begin{array} { l l } 
\text { Year 1 } & \$ 80,000 \
\text { Year 2 } & \$ 85,000 \
\text { Year 3 } & \$ 95,000 \
\text { Year 4 } & \$ 45,000
\end{array}$$ Considering the residual value is zero,calculate the payback period.Round to one decimal place

Quizplus · Accepted Answer

The Answer of Safe Driving School is considering purchasing new autos costing $235,000.The company's management has estimated that the autos will generate cash flows as follows:
 $$\begin{array} { l l } 
\text { Year 1 } & \$ 80,000 \
\text { Year 2 } & \$ 85,000 \
\text { Year 3 } & \$ 95,000 \
\text { Year 4 } & \$ 45,000
\end{array}$$ Considering the residual value is zero,calculate the payback period.Round to one decimal place

Safe Driving School Is Considering Purchasing New Autos Costing $235,000