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Compute the payback for the project

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Reference no: EM132681944

Question - A capital investment project requires an investment of $30,000 and has an expected life of 4 years (no salvage value). Annual cash flows are expected to be: $10,000 in year 1; $12,000 in year 2; $16,000 in year 3; and $14,000 in year 4. If the annual cash inflows occur throughout the year, compute the payback for the project?

a. 3 years

b. 2.5 years

c. 2.3 years

d. 4 years

Reference no: EM132681944

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