A project costs $25,000 and is expected to return cash flows of $8,500 per year for five years and then be worthless. What is the payback period for this project? Group of answer choices 1.9 years 2.1 years 2.9 years 1.2 years
Added by Montserrat U.
Step 1
Calculate the cumulative cash flows for each year: Year 1: $8,500 Year 2: $17,000 Year 3: $25,500 Year 4: $34,000 Year 5: $42,500 Show more…
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