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1 Exercise 24-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $310,000. It is expected to produce the following net flows occur evenly within each year. 1.42 points Year 1 $80,000 Year 2 $40,000 Year 3 $70,000 Year 4 $250,000 Net cash flows Year 5 $18,000 Total $458,000 02:24:03 Skipped Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus Payback Period answer to 2 decimal place.) eBook Hint Year Cumulative Net Cash Inflow Cash Inflow (Outflow) (Outflow) $ (310,000) Print 0 References 1 2 3 4 5 Payback period = 2 Exercise 24-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments: 1.42 points 8 02:23:13 a. A new operating system for an existing machine is expected to cost $290,000 and have a useful life of five yea yields an incremental after-tax income of $83,653 each year after deducting its straight-line depreciation. The value of the system is $11,000. b. A machine costs $170,000, has a $15,000 salvage value, is expected to last eight years, and will generate an a $46,000 per year after straight-line depreciation. eBook Hint Print Payback Period References Choose Numerator: Choose Denominator: Payback Period Payback period II a. b

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