What is the payback if an investment's cost is $45,000 and the after-tax benefit is $2,000 per year?
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.
Content will be erased after question is completed.
Enter the email address associated with your account, and we will email you a link to reset your password.
Forgot your password?