Question

An investment project provides cash flows of $1,562 per year for 10 years. If the initial cost is $8,720, what is the payback period

Answer 1

Answer:

5.58 years

Explanation:

An investment project provides cash of $1,562 per year for 10 years

The initial cost is $8,720

Therefore the payback period can be calculated as follows

= 8720/1562

= 5.58 years

Hence the payback period is 5.58 years