Use the table for the question(s)below.
Consider the following two projects:

-The payback period for project A is closest to:
A)2.55 years
B)2.05 years
C)2.25 years
D)2.45 years

Question

Use the table for the question(s)below.
Consider the following two projects:
 
-The payback period for project A is closest to:
A)2.55 years 
B)2.05 years 
C)2.25 years 
D)2.45 years

Quizplus · Accepted Answer

The payback period is calculated by determining how long it takes for the cumulative cash flow to equal the initial investment. Based on the given options, 2.25 years is the closest estimate for project A's payback period.

Use the Table for the Question(s)below