Determining company payback period

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Reference no: EM13140947

A company is considering the purchase of a new piece of equipment for $90,000. Predicted annual cash inflows from this investment are $36,000 (year 1), $30,000 (year 2), $18,000 (year 3), $12,000 (year 4) and $6,000 (year 5). The payback period is:

3.50 years.
3.00 years.
4.25 years.
4.50 years.
2.50 years.

Reference no: EM13140947

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