Question

You are considering a project with an initial cost of $4,600. What is the payback period for this project if the cash inflows are $450, $970, $2,800, and $500 a year for Years 1 to 4, respectively?a. 1.03 years.
b. 2.36 years.
c. 2.89 years.
d. 3.76 years.
e. 3.81 years.

Answer 1

The correct answer is C, 2.89 years