What is the payback period without discounting cash flows

Reference no: EM13267513

Consider the following four-year project. The initial after-tax outlay or after-tax cost is $1,000,000. The future after-tax cash inflows for years 1, 2, 3 and 4 are: $400,000, $300,000, $200,000 and $200,000, respectively. What is the payback period without discounting cash flows?

A) 3.5 years

B) 4.0 years

C) 2.5 years

D) 3.0 years

Reference no: EM13267513

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