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A company is considering two projects. Project A Project B Initial investment $300,000 $300,000 Cash inflow Year 1 $60,000 $90,000 Cash inflow Year 2 $60,000
A company is considering two projects.
Project A
Project B
Initial investment
$300,000
$300,000
Cash inflow Year 1
$60,000
$90,000
Cash inflow Year 2
$60,000
$80,000
Cash inflow Year 3
$60,000
$80,000
Cash inflow Year 4
$60,000
$50,000
Cash inflow Year 5
$60,000
$70,000
What is the payback period for Project B?
a.2 years
b.4.5 years
c.3.5 years
d.2.5 years
e.3 years
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