Find and compute what the payback period is

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Problem 1: A company is evaluating an investment proposal using the payback period method. Cash inflows are expected to be $80 000 in year 1, $120 000 in year 2, $150 000 in year 3, and $180 000 in year 4. The initial investment required is $380 000. Assuming even cash inflows throughout each year, the payback period is:

Option 1: 3.34 years.

Option 2: 3.47 years.

Option 3: 3.17 years.

Option 4: 3 year

Reference no: EM132727155

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