12) Lo-Flyers Ltd is evaluating an investment proposal that has a purchase cost of $80,000, installation costs of $20,000 and will generate cash flows of $60,000 for Year 1, and $25,000 per year for Years 2, 3 and 4. The payback period of this investment is:

Select one:

a.

between 1 and 2 years.

b.

between 2 and 3 years.

c.

between 3 and 4 years.

d.

beyond 4 years.

Clear my choice