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What is the payback period of this investment

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Question - Stark Resilient Inc., has just invested $4,886,200 in new equipment. The firm uses a payback period criterion of not accepting any project that takes more than four years to recover its costs. Management anticipates cash flows of $518,000, $652,400, $758,900, $1,302,800, $3,043,000, and $2,768,700 over the next six years. (Round answer to 2 decimal places, e.g. 15.25.) What is the payback period of this investment? Should Creative Solutions, Inc. go ahead with this project?

Reference no: EM132207329

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