An investment of $60,000 will return $18,000 per year. What is its payback period?
A) 2 years
B) 3 years
C) 3.33 years
D) 4 years

Name: An investment of $60,000 will return $18,000 per year. What is its payback period? A) 2 years B) 3 years C) 3.33 years D) 4 years
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Question

Quizplus · Accepted Answer

Payback period = Total initial investment / Annual cash inflow
Payback period = 60000 / 18000
Payback period = 3.33 years
Therefore, the best choice is C as it provides the correct payback period in years.

An Investment of $60,000 Will Return $18,000 Per Year