5 hinitial cash inflows of 5 ars 12 and 3 What is the projec

5 hinitial cash inflows of $5 ars 1.2, and 3. What is the project\'s We rs rounded to2 dec aces special cha

Solution

Payback Period = ( Last Year with a Negative Cash Flow ) + [( Absolute Value of negative Cash Flow in that year)/ Total Cash Flow in the following year)]

= 2 + ( 215/500)

= 2.43 years

Hence the correct answer is 2.43