The SoothingSpa Resort is appraising a January 1st 20X0 investment of $32,000 that will increase cash inflows by $8,000 in 20X0, $9,000 in 20X1, $9,000 in 20X2, $12,000 in 20X3 and $8,000 in 20X4. At the end of 20X4, it is estimated the investment can be salvaged for $6,000. What is the payback period for the investment?
A) 3 years.
B) 3 years and 6 months.
C) 3 years and 9 months.
D) 4 years.
E) 4 years and 6 months.
Correct Answer:
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