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

Question:

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

Year ............... Cash Flow
0 ................... −$8,300
1 ....................... 2,100
2 ....................... 3,000
3 ....................... 2,300
4 ....................... 1,700

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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