Question: A company is considering two projects. Project A Project BInitial investment $200,000 $200,000 Cash inflow Year 1 $60,000$90,000 Cash inflow Year 2 $60,000 $90,000 Cash
A company is considering two projects. Project A Project BInitial investment $200,000 $200,000 Cash inflow Year 1 $60,000$90,000 Cash inflow Year 2 $60,000 $90,000 Cash inflow Year 3$60,000 $40,000 Cash inflow Year 4 $60,000 $50,000 Cash inflow Year5 $60,000 $70,000 What is the payback period for Project B? a. 4.5years b. 3.5 years c. 2.5 years d. 2 years e. 3 years
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