Question
A company is considering two projects. Project I Project II Initial investment $200,000 $200,000 Cash inflow Year 1 50,000 60,000 Cash inflow Year 2 50,000
A company is considering two projects.
| Project I | Project II | |
| Initial investment | $200,000 | $200,000 |
| Cash inflow Year 1 | 50,000 | 60,000 |
| Cash inflow Year 2 | 50,000 | 60,000 |
| Cash inflow Year 3 | 50,000 | 80,000 |
| Cash inflow Year 4 | 50,000 | 10,000 |
| Cash inflow Year 5 | 50,000 | 50000 |
What is the payback period for Project II?
a.5 years
b.1 year
c.4.3 years
d.2.5 years
e.3 years
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365
