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Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9% and required payback is 4 years. What is the payback period

Sagot :

The payback period for the investment is 4 years.

What is the payback period?

The  payback period is a capital budgeting method used to determine the profitability of an investment. It determines the number of years it would take to recover the amount invested in a project from its cumulative cash flows.

payback period = amount invested / cash inflow

$100,000 / $25,000 = 4 years

To learn more about the payback period, please check: https://brainly.com/question/26068051

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