The payback period for the investment in equipment is:

Question

Quizplus · Accepted Answer

The payback period is the amount of time it takes for an investment to recoup its initial cost. In this case, we can calculate the payback period by dividing the initial cost of the equipment (which is not provided in the question) by the annual cash inflow generated by the equipment. Let's assume the initial cost of the equipment is $10,000 and the annual cash inflow is $3,500. 
Payback period = $10,000 / $3,500 = 2.857 years or approximately 2.8 years. 
Therefore, the best choice is D because it provides the most accurate payback period for the investment in equipment.

The Payback Period for the Investment in Equipment Is