Use the table for the question(s)below.
Consider a project with the following cash flows in $:
-Assume the appropriate discount rate for this project is 15%.The payback period for this project is closest to:
A)3.0 years.
B)2.5 years.
C)2.0 years.
D)4.0 years.

Question

Use the table for the question(s)below.
Consider a project with the following cash flows in $: 
-Assume the appropriate discount rate for this project is 15%.The payback period for this project is closest to:
A)3.0 years. 
B)2.5 years. 
C)2.0 years. 
D)4.0 years.

Quizplus · Accepted Answer

The payback period is the time it takes for a project to recover its initial investment. Without specific cash flow details, it's assumed that option B, 2.5 years, is the closest estimate given the discount rate and typical project cash flows.

Use the Table for the Question(s)below