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Grayson Corp. is considering the purchase of a piece of equipment that costs $34,269. Projected net annual cash flows over the project’s life are: Year Net Annual Cash Flow          1                   $  6,702          2                       19,077          3                       15,682          4                       19,233 The cash payback period is. Round your answer by two decimals

Grayson Corp. is considering the purchase of a piece of equipment that costs $34,269. Projected net annual cash flows over the project’s life are: Year Net Annual Cash Flow          1                   $  6,702          2                       19,077          3                       15,682          4                       19,233 The cash payback period is. Round your answer by two decimals

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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 Grayson Corp. is considering the purchase of a piece of equipment that costs $34,269. Projected net annual cash flows over the project’s life are:

Year Net Annual Cash Flow

         1                   $  6,702

         2                       19,077

         3                       15,682

         4                       19,233

The cash payback period is. Round your answer by two decimals
Selected Answer:

 0.56
Correct Answer:

 2.54 ± 0.01
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