Proposals L and K each cost $500,000,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 $125,000,while the net cash flows for Proposal K are as follows:

Determine the cash payback period for each proposal.

Question

Proposals L and K each cost $500,000,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 $125,000,while the net cash flows for Proposal K are as follows:
  
Determine the cash payback period for each proposal.

Quizplus · Accepted Answer

The Answer of Proposals L and K each cost $500,000,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 $125,000,while the net cash flows for Proposal K are as follows:
  
Determine the cash payback period for each proposal.

Proposals L and K Each Cost $500,000,have 6-Year Lives,and Have