Cash Payback Period A project has estimated annual net cash flows of $32,000. It is estimated to cost $201,600. Determine the cash payback period. Round your answer to one decimal place. fill in the blank 1 years

The cash payback period is 6.3 years.

Explanation:

The cash payback period can be calculated using the following formula:

Cash payback period = Estimated project cost / Estimated annual net cash flows (1)

Where;

Estimated project cost = $201,600

Estimated annual net cash flows = $32,000

Substituting the values into equation (1), we have:

Cash payback period = $201,600 / $32,000

Cash payback period = 6.3

Therefore, the cash payback period is 6.3 years.

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.