Consider the following four-year project.The initial after-tax outlay or after-tax cost is $1,000,000.The future after-tax cash inflows for years 1,2,3 and 4 are: $400,000,$300,000,$200,000 and $200,000,respectively.What is the payback period without discounting cash flows?
A)2.5 years
B)3.0 years
C)3.5 years
D)4.0 years

Question

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The Answer of Consider the following four-year project.The initial after-tax outlay or after-tax cost is $1,000,000.The future after-tax cash inflows for years 1,2,3 and 4 are: $400,000,$300,000,$200,000 and $200,000,respectively.What is the payback period without discounting cash flows?
A)2.5 years
B)3.0 years
C)3.5 years
D)4.0 years

Consider the Following Four-Year Project