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A capital budgeting project is expected to have the following cash flows: Year Cash Flows 0 -$650,000 1 $200,000 2 $220,000 3 $300,000 4 $380,000

A capital budgeting project is expected to have the following cash flows:

Year Cash Flows

0 -$650,000

1 $200,000

2 $220,000

3 $300,000

4 $380,000 What is the projects payback period?

a. 3.50 years

b. 2.77 years

c. 1.50 years

d. 3.30 years

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