How long will it take for bill to recoup initial investment

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Question - Long-term investment decision, payback method Personal Finance Problem - Bill Williams has the opportunity to invest in project A that costs $6,200 today and promises to pay $2200, $2500, $2500, $1900 and $1700 over the next 5 years. Or, Bill can invest $6,200 in project B that promises to pay $1300, $1300, $1300, $3,500 and $4100 over the next 5 years. (Hint: For mixed stream cash inflows, calculate cumulative cash inflows on a year-to-year basis until the initial investment is recovered.) How long will it take for Bill to recoup his initial investment in project B?

Reference no: EM133025915

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