Compute the payback period for a project with the following cash flows,

Compute the payback period for a project with the following cash flows, if the company’s discount rate is 12%. Initial outlay = $450
Cash flows:Year 1=$325
Year 2=$ 65
Year 3=$100

A.
3.17 years
B.
2.88 years
C.
3.43 years
D.
2.6 years

Solution