What is the payback period for the following set of cash flows? Year Cash Flow 0......-$5,500 1......

Question:

What is the payback period for the following set of cash flows?

Year Cash Flow

0......-$5,500

1...... 1,300

2...... 1,500

3...... 1,900

4...... 1,400

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,...