An investment project requires a net investment of $90,000. The project is expected to generate annual net cash inflows of $21,000 for the next 5 years. The firm's cost of capital is 12 percent. Determine the simple payback period for the project.
- 2.98 years
- 3.2 years
- 4.09 years
- 6.86 years
- 4.29 years