Assume a project has the following expected cash flows:
Year 0: ($400,000)
Year 1: $100,000
Year 2: $150,000
Year 3: $200,000
Year 3: $250,000
What is the project’s payback (payback period)?
a. 2.00 years
b. 2.25 years
c. 2.50 years
d. 2.75 years
e. 3.15 years