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Determine the payback period for this investment

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Question - 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.

Reference no: EM131809088

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