What is the investment payback period


An investment of $700,000 is expected to generate the following cash flows:

Year 1 $200,000
Year 2 $200,000
Year 3 $100,000
year 4 $200,000
year 5 $100,000

What is the investment's payback period?

a) 7 years

b) 5 years

c) 3 years

d) 4 years

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Accounting Basics: What is the investment payback period
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