Project X Has a Cost of $100,000 and Provides the Following

question 34

Multiple Choice

Project X has a cost of $100,000 and provides the following annual earnings: year 1 $35,000; year 2 $25,000; year 3 $175,000; and year 4 $10,000. Under the payback method, in which year is the investment recouped?

• A) Year 2
• B) Year 3
• C) Year 4
• D) Not enough information to determine