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 ............................. -$5,900

1 ............................... 2,000

2 ............................... 2,700

3 ............................... 1,500

4 ................................. 900

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,...