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Calculate the payback period for a project requiring a $5,000 investment today and that promises to pay $1860 one year from today, $2421 two years
Calculate the payback period for a project requiring a $5,000 investment today and that promises to pay $1860 one year from today, $2421 two years from today, and $3352 three years from today. The cash flows after the $5,000 investment summarize cash flows that are actually occurring daily over time (i.e., the answer to this question is NOT 3.0000 years!). In years, what is the payback period? Express accurate out to 2 decimal places (e.g., 1.75 would imply one year plus 3/4 of an additional year).
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