Trying to understand why these values were chosen for the payback period calculations

Company C is planning to undertake another project requiring initial investment of $50 million and is expected to generate $10 million in Year 1, $13 million in Year 2, $16 million in year 3, $19 million in Year 4 and $22 million in Year 5. Calculate the payback value of the project.

Solution

(cash flows in millions)		Cumulative Cash Flow
Year	Cash Flow
0	(50)	(50)
1	10	(40)
2	13	(27)
3	16	(11)
4	19	8
5	22	30

Payback Period = 3 + (|-$11M| $19M) = 3 + ($11M $19M) 3 + 0.58 3.58 years