What is the payback period for Project B

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Question - A company is considering two projects.

 

Project A

Project B

Initial investment

$200,000

$200,000

Cash inflow Year 1

$60,000

$90,000

Cash inflow Year 2

$60,000

$90,000

Cash inflow Year 3

$60,000

$40,000

Cash inflow Year 4

$60,000

$50,000

Cash inflow Year 5

$60,000

$70,000

Required - What is the payback period for Project B?

Reference no: EM133189121

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