Compute payback period for a project with cash flows


Compute the payback period for a project with the following cash flows, if the company's discount rate is 12%.

Initial outlay = $450

Cash flows:
Year 1 = $325
Year 2 = $65
Year 3 = $100

A. 3.43 years

B. 3.17 years

C. 2.88 years

D. 2.6 years

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Finance Basics: Compute payback period for a project with cash flows
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