Briges LLC is investing a new machine that cost 200000 The n

Briges LLC is investing a new machine that cost $200,000. The new machine would generate cash flow of $150,000 for each of the next three years briges uses a discount rate of 10% what is the present value payback?

A. 125

B. 151

C. 165

Show me the steps and how you solve it please i need to understand the steps

Hence discounted Payback period=Last period with a negative cumulative cash flow+(Absolute value of cumulative cash flows at that period/Cash flow after that period).

=1+((63636.36/123966.94)

=1.51 years(Approx).

Year	Cash flows	Present value@10%	Cumulative Cash flows
0	(200,000)	(200,000)	(200,000)
1	150000	136,363.64	(63636.36)
2	150000	123966.94	60330.58
3	150000	112697.22	173027.80(Approx).

Briges LLC is investing a new machine that cost $200,000. The new machine would generate cash flow of $150,000 for each of the next three years briges uses a di

Briges LLC is investing a new machine that cost 200000 The n

Solution

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