Suzanne's Cleaners is considering a project that has the following cash flow data.What is the project's payback? $$\begin{array} { l c c c c c c }
\text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \
\text { Cash flowr } & - \$1,100 & \$300 & \$310 & \$320 & \$330 & \$340
\end{array}$$
A) 2.31 years
B) 2.56 years
C) 2.85 years
D) 3.16 years
E) 3.52 years

Question

Suzanne's Cleaners is considering a project that has the following cash flow data.What is the project's payback? $$\begin{array} { l c c c c c c } 
\text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \
\text { Cash flowr } & - \$1,100 & \$300 & \$310 & \$320 & \$330 & \$340
\end{array}$$
A) 2.31 years
B) 2.56 years
C) 2.85 years
D) 3.16 years
E) 3.52 years

Quizplus · Accepted Answer

$$\begin{array} { l c c c c } 
\text { Year } & 0 & 1 & 2 & 3 &4&5\
\hline \text { Cash flowr } &- \$1.100 &\$300& - \$ 310 & \$ 320 & \$ 330 & \$ 340 \
\text { Cumulative CF } &- \$1.100&- \$800 & - \$490 & - \$ 170 &  \$ 160 & \$ 500\
\text { Payback }=3.52 \text { years }& -  &- &-&-&3.52&-\
\end{array}$$

Suzanne's Cleaners Is Considering a Project That Has the Following