Payback Period is Initial Cash Outlay = $-100. Cash Inflow Year 1 = +60. Cash Inflow...

Payback Period is
Initial Cash Outlay = $-100.
Cash Inflow Year 1 = +60.
Cash Inflow Year 2 = +9.
Cash Inflow Year 3 = +60.

		1 year.
		2.52 years.
		3 years.
		never.

Expert Solution

Calculation of payback period:
Time	Amount	Cumulative
-	(100.00)	(100.00)
1.00	60.00	(40.00)
2.00	9.00	(31.00)
3.00	60.00	29.00

Payback Period= 2+ 31/60
Payback Period= 2.52 years

Correct answer is 2.52years

jeff jeffy answered 1 year ago

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