Young Corporation is considering purchasing equipment that costs $80,000 and is expected to provide the following cash inflows over its five-year useful life: Year Cash inflow 1 $ 18,000 2 22,000 3 24,000 4 16,000 5 9,000 What is the payback period of this investment project

It will take 4 years to cover the initial investment.

Explanation:

Giving the following information:

Initial investment= $80,000

Cash flows:

1 $ 18,000

2 22,000

3 24,000

4 16,000

5 9,000

The payback period is the time required to cover the initial investment:

Year 1= 18,000 - 80,000= -62,000

Year 2= 22,000 - 62,000= -40,000

Year 3= 24,000 - 40,000= -16,000

Year 4= 16,000 - 16,000= 0

It will take 4 years to cover the initial investment.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer; experimentation;