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Alecsey [184]
3 years ago
10

What is the payback (in years) of a project with the following cash flows? Year 0 1 2 3 Cash Flow -$100 40 40 80 Group of answer

choices 2.25 2.50 1.25 Cannot be determined without knowing either the IRR or WACC. CHEGG

Business
1 answer:
galina1969 [7]3 years ago
6 0

Answer:

2.25 years

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Please check the attached image for a table showing how the payback period was calculated

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