Question

Beyer Company is considering the purchase of an asset for $180,000

Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Compute the payback period for this investment. (Round your answer to 3 decimal places.)

Year 1
Year 2
Year 3
Year 4
Year 5
Total

Net cash flows
$60,000
$40,000
$70,000
$120,000
$38,000
$328,000

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