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ACC - Exercise 15-22 Houston Fashions




Question;Exercise 15-22Payback periodHouston Fashions is considering a new product line that would require an investment of $140,000 in fixtures and displays and $180,000 in working capital. Store managers expect the following pattern of net cash inflows from the new product line over the life of the investment.Year Amount1 70,0002 78,0003 72,0004 56,0005 50,0006 48,0007 44,000a. Compute the payback period for the proposed new product line. Houston Fashions requires a four-year pre-tax payback period on its investments. Round your answer to one decimal places.


Paper#44277 | Written in 18-Jul-2015

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