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Pina Colada Inc. is contemplating a capital investment of $98000. The cash flows over the projects four years are: Expected Annual Expected Annual Year Cash
Pina Colada Inc. is contemplating a capital investment of $98000. The cash flows over the projects four years are:
| Expected Annual | Expected Annual | |
| Year | Cash Inflows | Cash Outflows |
| 1 | $36000 | $13000 |
| 2 | 51000 | 18000 |
| 3 | 65000 | 22000 |
| 4 | 62000 | 40000 |
The cash payback period is
3.74 years.
3.17 years.
4.91 years.
2.26 years.
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