Casper Company paid $25,000 cash for a capital investment. The company expects the investment to generate net

Question:

Casper Company paid $25,000 cash for a capital investment. The company expects the investment to generate net cash inflows of $5,500 per year. What is the payback period of this investment?

Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...