What Is the Payback Period for Tangshan Mining Company's New

Multiple Choice

What is the payback period for Tangshan Mining company's new project if its initial after-tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $700,000 in year 3, and $1,800,000 in year 4?

A) 4.33 years
B) 3.33 years
C) 2.33 years
D) 1.33 years