In: Finance
| What is the payback period for the following set of cash flows? |
| Year | Cash Flow |
| 0 | −$ 4,200 |
| 1 | 2,500 |
| 2 | 2,600 |
| 3 | 2,600 |
| 4 | 1,900 |
Solution :
The payback period for the given set of cash flows is = 1.6538 years
= 1.65 years ( when rounded off to two decimal places )
Please find the attached screenshot of the excel sheet containing the detailed calculation for the above solution.
