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Hobbs Russell Ltd is considering upgrading its accounting software from Fastel accounting software to Xero Accounting software. The initial investment will be R800 000. Calculate

Hobbs Russell Ltd is considering upgrading its accounting software from Fastel accounting software to Xero Accounting software. The initial investment will be R800 000. Calculate the payback period if management expects future cash flows to be R50 500, R190 700, R260 000, R330 000 and R120 000 a year over the next five years, respectively.

4.096 years.

3.10 years.

3.91 years.

4.96 years.

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