ompute the payback period for a project with the following cash flows - 2299

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Compute the payback period for a project with the following cash flows, if the company’s discount rate is 12%. Initial outlay = $450

Cash flows:          Year 1        =       $325

          Year 2        =       $ 65

          Year 3        =       $100

a. 2.88 years

b. 3.17 years

c. 2.6 years

d. 3.43 years

Solution Description

Compute the payback period for a project with the following cash flows, if the company’s discount rate is 12%. Initial outlay = $450