A Project Has an Initial Cost of $1,900

Multiple Choice

A project has an initial cost of $1,900. The cash inflows are $0, $500, $900, and $700 over the next four years, respectively. What is the payback period?

A) 2.71 years
B) 2.98 years
C) 3.11 years
D) 3.71 years
E) never