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Beyer Company is considering the purchase of an asset for $380,000. It is expected to...

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Accounting

Beyer Company is considering the purchase of an asset for $380,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year.

Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net cash flows $ 90,000 $ 50,000 $ 70,000 $ 250,000 $ 11,000 $ 471,000

Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal place.)

Year Cash inflow (Outflow) Cumulative Net Cash Inflow (Outflow)
0 $(380,000)
1
2
3
4
5
Payback period =

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