What is the payback if an investment's cost is $45,000 and the after-tax benefit is $2,000 per year?

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What is the payback if an investment's cost is $45,000 and the after-tax benefit is $2,000 per year?

Nov 9th, 2015

Thank you for the opportunity to help you with your question!

We have the investment cost=$45,000

And the net cash inflow as $2000,as after deducting the taxes the net cash inflow=$2000 per year.

So the payback period is given by the formula =Investment Cost/Net cash inflow =45000/2000 =22.5 year.

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Nov 9th, 2015

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