Question: The A Construction Co. is considering a new inventory system that will cost 850,000 SAR. The system is expected to generate positive cash flows over

The A Construction Co. is considering a new inventory system that will cost 850,000 SAR. The system is expected to generate positive cash flows over the next four years in the amounts of 370,000 SAR in year one, 350,000 SAR in year two, 250,000 SAR in year three, and 180,000 SAR in year four. Its required rate of return is 8%. What is the payback period of this project?

		3.00 years
		3.09 years
		2.52 years
		2.40 years

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