What is the payback period for the following set of cash flows? Year .....................Cash Flow 0 ..............................$7,800

Question:

What is the payback period for the following set of cash flows?
Year .....................Cash Flow
0 ..............................−$7,800
1 ..................................3,100
2 ..................................3,200
3 ..................................2,200
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,...

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