Martin Brother
Martin Brother Is Considering Investing $20,000 in a Project

Martin Brother
Martin Brother is considering investing $20,000 in a project with the following cash revenues and expenses: $\begin{array}{lll}&\text { Cash Expenses \&}\\&\text { Revenues }&\text { Depreciation }\\\text { Year 1 } & \$ 8,000 & \$ 8,000 \\\text { Year 2 } & \$ 12,000 & \$ 8,000 \\\text { Year 3 } & \$ 15,000 & \$ 9,000 \\\text { Year 4 } & \$ 20,000 & \$ 10,000 \\\text { Year 5 } & \$ 20,000 & \$ 10,000\end{array}$ Assume straight-line depreciation over five years.
-Refer to Martin Brother. What would be the payback period for this investment?

A) between 1 and 2 years
B) between 2 and 3 years
C) between 3 and 4 years
D) between 4 and 5 years