A Company Is Considering a Proposal to Invest $40,000 in a Project

Essay

A company is considering a proposal to invest $40,000 in a project that would provide the following net cash flows:
$$\begin{array} { l l } \text { Year 1 } & \$ 6,500 \\\text { Year 2 } & 12,700 \\\text { Year 3 } & 15,000 \\\text { Year 4 } & 12,800\end{array}$$ $$\begin{array} { l l } \text { Year 1 } & \$ 6,500 \\\text { Year 2 } & 12,700 \\\text { Year 3 } & 15,000 \\\text { Year 4 } & 12,800\end{array}$$ Compute the project's payback period.