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Business, 22.05.2020 03:02 mistymjoy

Nestor Company is considering the purchase of an asset for $100,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Compute the break-even time (BET) period for this investment.
Annual NetCash Flows Present Value of $1 at 10%
Year 0 1.0000
Year 1 $ 40,000 .9091
Year 2 $ 40,000 .8264
Year 3 $ 35,000 .7513
Year 4 $ 35,000 .6830
Year 5 $ 30,000 .6209

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