Calculate the payback period

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For the following stream of free cash flows, calculate the payback period and indicate whether you would invest in the project with a four year maximum allowable payback period.

Year

0

1

2

3

4

5

Free Cash Flows

-45,452

10,005

14,921

12,537

10,452

21,455

Group of answer choices

3.8 years; Invest

3.8 years; Do not invest

4.8 years; Invest

4.8 years; Do not invest

Reference no: EM133068238

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