Company Rapid Growth is considering the following project: Year 0 1 2 3 4 5 Cash Flows -$89700 $10300 $25800 $33600 $38300 $56300  What's the payback period of the project?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Company Rapid Growth is considering the following project:

Year 0 1 2 3 4 5
Cash Flows -$89700 $10300 $25800 $33600 $38300 $56300

 What's the payback period of the project?

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Step 1

Given:

Year Cash flow
0 -$89,700
1 $10,300
2 $25,800
3 $33,600
4 $38,300
5 $56,300
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