The Following Four-Year Project Has an Initial Cost of $1,000,000

Multiple Choice

The following four-year project has an initial cost of $1,000,000. The future cash inflows for the next four years are $400,000, $300,000, $200,000, and $200,000, respectively. What is the payback
Period for this project?

A) 2.5 years.
B) 3.0 years.
C) 3.5 years.
D) 4.0 years.
E) 4.5 years.