Assignment:
The Chicken Basket is considering a project with an initial cost of $18,500. The project will produce cash flows of: $6,700 in year 1, $6,200 in year 2, $5,400 in year 3, and $3,800 in year 4.
Required:
Question: What is the payback period?
Choose one
A. 3.05 years
B. 3.26 years
C. 3.33 years
D. 3.47 years
Note: Explain all calculation and formulas.