Problem:
AMP Inc. has invested $2,165,800 on equipment. The firms uses payback criteria of not accepting any project that takes on more than four years to recover costs. The company anticipates cash flows of $436,386, $512,178, $564,755, $764,997, $816,500, and $825,375 over the next 6 years.
Required:
Question: What is the payback period?
Note: Please show how to work it out.