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What is the payback period for this project

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Reference no: EM132948081

Question - Albury Company is adding a new assembly line at a cost of $8.5 million. The company expects the project to generate cash flows of $2 million, $3 million, $4 million, and $5 million over the next four years. Its cost of capital is 16 percent. What is the payback period for this project (rounded to one decimal place)?

A. 2.8 years

B. 2.9 years

C. 3.1 years

D. 3.4 years

Reference no: EM132948081

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