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What is the payback period of this project

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Reference no: EM132556027

Question - DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the payback period of this project?

a. 4.00 years

b. 3.09 years

c. 2.91 years

d. 2.50 years

Reference no: EM132556027

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