# The expected profits from a $52,000 investment are $8000 in Year 1, $12,000 in each of Years

## Question:

a. What is the investment’s payback period?

b. If the firm’s required payback period is four years, will it make the investment? 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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