The payback period of a project that costs $1,000 initially and promises after-tax cash inflows of $2,000 each year for the next three years is 0.5 years.

Name: The payback period of a project that costs $1,000 initially and promises after-tax cash inflows of $2,000 each year for the next three years is 0.5 years.
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Quizplus · Accepted Answer

The payback period is calculated by dividing the initial investment by the annual cash inflows. In this case, the payback period is $1,000 / $2,000 = 0.5 years.

The Payback Period of a Project That Costs $1,000 Initially