A small project has a cost of $12,000 to implement and is expected to have annual cash flows of $3,000.What is its payback period?
A)One year
B)Two years
C)Three years
D)Four years

Name: A small project has a cost of $12,000 to implement and is expected to have annual cash flows of $3,000.What is its payback period? A)One year B)Two years C)Three years D)Four years
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Question

Quizplus · Accepted Answer

The payback period is calculated by dividing the initial investment by the annual cash flow. So, $12,000 / $3,000 = 4 years.

A Small Project Has a Cost of $12,000 to Implement