What is the payback for project

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Suppose a company has proposed a new 5-year project. The project has an initial outlay of $25,000 and has expected cash flows of $3,000 in year 1, $5,000 in year 2, $5,000 in year 3, $7,000 in year 4, and $8,000 in year 5. The required rate of return is 15% for projects at this company. What is the Payback for this project? (Answer to the nearest tenth of a year, e.g. 3.2)

Reference no: EM132700935

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