Computing Payback For The

Project

Assume we will accept the project if it pays back

within two years.

Year $1$: $165,000-63,120=101,880$ still to

recover

Year $2$: $101,880-70,800=31,080$ still to

recover

Year $3$: $31,080-91,080=-60,000$ project pays

back in year $3$

If the preset limit is $3$ years, do we accept or

reject the project?Computing Payback for the Project