What is the project's payback?

Question

Tapley Dental Associates is considering a project that has the following cash flow data. What is the project's payback?

Year: 0 1 2 3 4 5

Cash flows: -$1,000 $300 $310 $320 $330 $340

a. 2.11 years

b. 2.50 years

c. 2.71 years

d. 3.05 years

e. 3.21 years

Answer 1

E