When is the pay back


Question:

A project has a cost (projected outflow of ($14,000) in year 0.

This project has the following projected inflows in years 1-5:

year 1 $ 2,000
year 2 $ 4,000
year 3 $ 7,000
year 4 $ 7,000
year 5 $ 7,000.

When is the pay back? (year / months)___________________

If this firm has a payback policy of 3 years, will this project meet that criteria?_____________

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Microeconomics: When is the pay back
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