The Blue Goose is considering a project with an initial cost of $42,700. The project will produce cash inflows of $8,000 a year for the first two years and $12,000 a year for the following three years. What is the payback period?
A) 2.87 years
B) 3.23 years
C) 3.41 years
D) 3.79 years
E) 4.23 years

Question

Quizplus · Accepted Answer

The Answer of The Blue Goose is considering a project with an initial cost of $42,700. The project will produce cash inflows of $8,000 a year for the first two years and $12,000 a year for the following three years. What is the payback period?
A) 2.87 years
B) 3.23 years
C) 3.41 years
D) 3.79 years
E) 4.23 years

The Blue Goose Is Considering a Project with an Initial