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  3. project a will cost $500,000. the expected cash in

Project A will cost $500,000. The expected cash inflows it will generate are $250,000 the...

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Finance

  1. Project A will cost $500,000. The expected cash inflows it will generate are $250,000 the first year; $200,000 the second year; and $100,000 a year thereafter for the next 7 years. Assuming the cash flows are received evenly throughout the year, what is the payback period?
    1. 4 years
    2. 3 years
    3. 2.5 years
    4. 2 years

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