Chapter 12, Problem 5MCQ

An investment of $1,000 produces a net cash inflow of $500 in the first year and $750 in the second year. What is the payback period?

1. a. 1.67 years
2. b. 0.50 year
3. c. 2.00 years
4. d. 1.20 years
5. e. Cannot be determined