Question - Ignore income taxes in this problem.) The Zinger Corporation is considering an investment that has the following data:
| |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
| Investment |
$8,000 |
$3,000 |
|
|
|
| Cash inflow |
$2,000 |
$2,000 |
$5,000 |
$4,000 |
$4,000 |
Cash inflows occur evenly throughout the year. The payback period for this investment is:
3.0 years
3.5 years
4.0 years
4.5 years