Taggart Inc. is considering a project that has the following cash flow data. What is the project's payback?   Year 0     1   2   3   Cash flows -$1,375 $500 $500 $500   a. 2.15 years   b. 1.70 years   c. 2.11 years   d. 1.81 years   e. 2.75 years

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Taggart Inc. is considering a project that has the following cash flow data. What is the project's payback?
 

Year

0    

1  

2  

3  

Cash flows

-$1,375

$500

$500

$500

  a.

2.15 years

  b.

1.70 years

  c.

2.11 years

  d.

1.81 years

  e.

2.75 years

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