What is the payback period for the following set of cash flows? YearCash Flow 0...................... ($4,500) 1

Question:

What is the payback period for the following set of cash flows?

YearCash Flow

0...................... ($4,500)

1 ..........................1,300

2 ..........................2,400

3 ..........................1,100

4 .............................800

Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...