The Following Four-Year Project Has an Initial Cost of $1,000,000

question 193

Multiple Choice

The following four-year project has an initial cost of $1,000,000. The future cash inflows for the next four years are $400,000, $300,000, $200,000, and $200,000, respectively. What is the payback period for this project?

• A) 2.5 years.
• B) 3.0 years.
• C) 3.5 years.
• D) 4.0 years.
• E) 4.5 years.

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