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What is the payback period for the following proposed capital budgeting project: Year Cash Flows 0 -1,000,000 1 200,000 2 400,000 3 100,000 4 400,000

What is the payback period for the following proposed capital budgeting project:

Year Cash Flows

0 -1,000,000

1 200,000

2 400,000

3 100,000

4 400,000

3.2 years

2.75 years

3.25 years

2.8 years

3.75 years

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