Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Get accurate and detailed answers to your questions from a dedicated community of experts on our Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

elmer sporting goods is getting ready to produce a new line of golf clubs by investing $1.85 million. the investment will result in additional cash flows of $525,000, $812,500, and 1,200,000 over the next three years. what is the payback period for this project? (round your answer to two decimal places.)

Sagot :

Elmer sporting goods project will payback period itself off in 2.43 years.

Elmer Sporting Goods has committed $1.85 million toward the production of a new line of golf clubs. Over the following three years, the investment will generate additional cash flows of $525,000, $812,500, and 1,200,000.

The payback period is the length of time needed for the investment to yield a profit. The investment cost left over for the first year is $1,850,000 less $525,000, which equals $1,325,000. The remaining investment cost for the second year is $512,500 ($1,325,000 - $812,500). The payback in the third year is 0.427, 2.43 years is the entire payback period.

To learn more about payback refer here:

https://brainly.com/question/13978071

#SPJ4

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.