consider the following two investment projects:

Year

Investment A end of year cash flows

Investment B end of year cash flows

2001

+$200,000

+$100,000

2002

+400,000

+100,000

2003

+400,000

+100,000

2004

+400,000

+800,000

2005

+600,000

+1,000,000

Both projects require an investment of $1,000,000 at the end of 2000. The required rate of return for both projects is 10%.

WHAT IS THE PAY BACK PERIOD FOR PROJECT A ?

WRITE THA ANSWER AS FOLLOWS

EXAMPLE 3Y4M2D