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With an initial investment amount of $46,000, using the straight line method of depreciation and a discount factor of 20 %,with a scrap value of $4,000 at the end of year 4 and profit figures of $6,500 in year 1, $4,500 in year 2, $5,500 in year 3 and $5,000 in year 4, What is the payback period ?
There is no point in setting test questions here and expecting a solution!
You must have an answer in the same book in which you found the question and so you should ask about whatever it is in the answer that you are not clear about – then I will help you.Have you watched the free lectures on this? The lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well. (If necessary watch the relevant F2 lectures as well, because this is basic revision of Paper F2.)
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