Determine the cash payback period is

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Larkspur Inc. is contemplating a capital investment of $78000. The cash flows over the project's four years are:

Expected Annual Expected

Annual Year                 Cash Inflows              Cash Outflows

1                              $38000                       $12000

2                               28000                      20000

3                          60000                          24000

4                            50000                       30000

Question 1: Determine The cash payback period is

Option 1: 3.40 years.

Option 2: 3.20 years.

Option 3: 2.33 years.

Option 4: 3.42 years.

Reference no: EM132540787

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