Math  /  Data & Statistics

QuestionThe pay back period of an investment that achieves the following cash flow in a row (0,1000,2000,4000)(0,1000,2000,4000) and its initial outlay equals $5000\$ 5000 is:-
Select one: a. 3 years and 5 months b. 3 years and 6 months c. 2 years and 6 months d. 2 years and 5 months

Studdy Solution
Combine the years and months to get the total payback period.
Therefore, the payback period is: 2 years+6 months 2 \text{ years} + 6 \text{ months}
The correct answer is: c. 2 years and 6 months

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