Find the cash payback period is

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Monty Corp. is considering the purchase of a piece of equipment that costs $25000. Projected net annual cash flows over the project's life are:

Year Net Annual Cash Flow

1 $7000

2 10000

3 10000

4 11000

Question 1: The cash payback period is

Option 1: 2.40 years.

Option 2: 2.80 years.

Option 3: 1.96 years.

Option 4: 2.64 years.

Reference no: EM132540783

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