Which option has the shortest payback period


Problem

Barbara is considering two career and educational options, both of which she is excited about. Both options would cost approximately $86,000 in tuition, room, living expenses, books, travel, and fees. Pursuing Option 1 would lead to a job after graduation earning approximately $35,000 per year. Option 2 would lead to a job after graduation earning approximately $40,000 per year. Based on this information, which option has the shortest payback period?

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Financial Management: Which option has the shortest payback period
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