Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Compute the payback period for this investment (round years to two decimals).year 1 year 2 year 3 year 4 year 5 TotalTotal Net Cash Flows $60,000 $40,000 $70,000 $125,000 $35,000 $330,000Payback Period:Payback period is a tool to calculate how long will the investment be able to offset the cost with the cash inflow produced. In this method, the cost of investment should be equal to the cumulative cash inflows. In other words, the period where the cumulative cash flow is zero is the payback period.Answer and Explanation:
