013508 Save Question 11 1 point D Resnick Inc is considering

0135.08 Save Question 11 (1 point) D Resnick Inc is considering a project that has the following cash flow data What is the project\'s payback\'? Year Cash flows $475 $200 $200 $200 2.61 years 1.97 years 2.42 years 2.26 years 2.38 years Save

Solution

project payback = Initial investment /cash flow

       = 475/200

           = 2.375 years [rounded to 2.38]

correct option is \" E\"