Calculate the payback period for this investment

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Question - Ignore income taxes in this problem.) The Zinger Corporation is considering an investment that has the following data:

  Year 1 Year 2 Year 3 Year 4 Year 5
Investment $8,000 $3,000      
Cash inflow $2,000 $2,000 $5,000 $4,000 $4,000

Cash inflows occur evenly throughout the year. The payback period for this investment is:

3.0 years

3.5 years

4.0 years

4.5 years

Reference no: EM131732623

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