Assessing investments: Accounting approach
APP, Accounting payback period
The table below shows the cash flows of an investment.
\[\begin{array}{l|c} &\text{Cash flows}\\ \hline\ C_0 & -240\\\ C_1 & 55 \\ \ C_2 & 55 \\ \ C_3 & 55 \\ \ C_4 & 55 \\ \ C_5 & 55 \\ \end{array}\]
Determine the accounting payback period of the investment.
\[\begin{array}{l|c} &\text{Cash flows}\\ \hline\ C_0 & -240\\\ C_1 & 55 \\ \ C_2 & 55 \\ \ C_3 & 55 \\ \ C_4 & 55 \\ \ C_5 & 55 \\ \end{array}\]
Determine the accounting payback period of the investment.
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