If the initial investment is a project is $100,000 and the expected annual net profit for the project is $20,000, the payback period is:
A) One fifth of a year
B) 4 years
C) 5 years
D) 10 years
E) Insufficient information to determine the payback period

Question

Quizplus · Accepted Answer

The payback period is calculated by dividing the initial investment by the annual net profit. $100,000 / $20,000 = 5 years.

If the Initial Investment Is a Project Is $100,000 and the Expected