| Investment Appraisal - Exercise 3.10 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Year 1 | 5000.0 | ||||
| Year 2 | 5000.0 | ||||
| Year 3 | 5000.0 | ||||
| The £25,000 is paid back halfway between Years 2 and 3. | |||||
| Payback Period = | 2 years + (£5000 / £10,000) x 365 days | ||||
| 2 years 183 days | |||||
| Payback Period = | 2 years + (£5000 / £10,000) x 12 months | ||||
| 2 years 6 months |