Assessment 4: (Algo) Zeta Gaming Company has an opportunity to... LO 16-4

Zeta Gaming Company has an opportunity to purchase a video game phone app that will cost $240,000. Zeta expects the demand for the app to start strong but to diminish as people tire of the game. The expected cash Inflows are as follows: Year 1 $90,000 Year 2 $80,000 Year 3 $70,000 Year 4 $60,000 Year 5 $50,000 If Zeta uses the cumulative approach the payback period for this Investment is Multiple Choice O 1.50 years. O 3.00 years. 3.90 years. O 4.40 years