What is the payback period to produce cash inflows


ANderson Inc. is considering a project with an initial cost of $28,000. The project will produce cash inflows of $9,000 a year for the first year and $10,000 a year for the following three years. What is the payback period?

i) 2.31 years
ii) 2.47 years
iii) 2.90 years
iv) 3.10 years
v) 3.34 years

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Finance Basics: What is the payback period to produce cash inflows
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