What is the payback period for the following set of cash flows? Year Cash Flow 0 .......................

Question:

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

Year Cash Flow

0 ....................... -$3,400

1 ....................... 1,200

2 ...................... 1,500

3 ...................... 900

4 ...................... 700

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,...