What is the payback period for the following set of cash flows? Year Cash Flow 0 $6,700

Question:

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

Year	Cash Flow
0	–$6,700
1	2,800
2	3,200
3	2,200
4	1,400

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,...