Aysha_bxgum
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I need someone to help me understand how to work it out, videos on youtube still don't help me ah >.<

I'll give an example:

The payback of an investment is estimated to be 3 years and 8 months. Net cash flows in Year 1 are estimated to be £60'000, £70'000 in Year 2 and £90'000 in Year 3. The estimated cost of the investment is £300'000. Calculate the estimated net cash flows in Year 4.
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simrx.n
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shouldn’t the cash flow be negative at the start? i think you’ve got the wrong numbers
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Aysha_bxgum
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(Original post by simrx.n)
shouldn’t the cash flow be negative at the start? i think you’ve got the wrong numbers
Um I'm not sure I copied it word for word from the Tutor2U AQA A level business calculations booklet

The cost of the investment itself is negative.
So as you add cash inflow each year, it should be positive by Year 4 but I can't work out how much inflow there is for Year 4 though
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