Determine the payback period for this investment

Reference no: EM13137456

Lenitnes Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $250,000 and will yield the following expected cash flows. Management requires investments to have a payback period of three years, and it requires a 10% return on its investments.

Period Cash Flow
1 $ 125,000
2 94,000
3 75,000
4 52,000
5 47,000

Determine the payback period for this investment. (Round your answer to 1 decimal place.)

Reference no: EM13137456

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