A project manager is using the payback method to make the final decision on which project to undertake. The company

A project manager is using the payback method to make the final decision on which project to undertake. The company

Question:

A project manager is using the payback method to make the final decision on which project to undertake. The company has a 10% required rate of return and expects a 4% rate of inflation for the following five years. The initial investment cost of the project was $500,000. What is the payback period of a project that has cash flows as shown in the table:year 1= $50,000, year 2 =$75,000, year 3 =$150,000, year 4 =$150,000, year 5=$750,000?.

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