Taggart Inc A $1.86$ Years
B $2.07$ Years
C $2.30$ Years
D $2.78$ Years

Short Answer

Taggart Inc. is considering a project that has the following cash flow data. What is the project's payback? $\begin{array}{c}\begin{array}{lll} \text {Year}\\\text {Cash flows}\end{array}\begin{array}{lll} 0 \\\hline -\$1,150 \end{array}\begin{array}{lll}1 \\\hline \$500\end{array}\begin{array}{lll}2 \\\hline \$500\end{array}\begin{array}{lll}3 \\\hline \$500\end{array}\end{array}$

a. $1.86$ years
b. $2.07$ years
c. $2.30$ years
d. 2.53 years
e. $2.78$ years