Consider the following two projects:

Project	Year 0 C/F	Year 1 C/F	Year 2 C/F	Year 3 C/F	Year 4 C/F	Year 5 C/F	Year 6 C/F	Year 7 C/F	Discount Rate
Alpha	79	20	25	30	35	40	N/A	N/A	15%
Beta	80	25	25	25	25	25	25	25	16%

The payback period for project Alpha is closest to:

Question content area bottom

Part 1

A.

2.6 years

B.

3.1 years

C.

3.2 years

D.

2.9 years