Compute what the payback period is

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Question 1: A company is considering the purchase of a new piece of equipment for $110,000. Predicted annual cash inflows from this investment are $46,000 (year 1), $35,000 (year 2), $17,000 (year 3), $13,000 (year 4) and $5,000 (year 5). The payback period is ___________.

Group of answer choices

Option 1: 4

Option 2: 3

Option 3: 3.5

Option 4: 5

Reference no: EM132547597

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