A Company Is Evaluating an Investment Proposal Using the Payback

Multiple Choice

A company is evaluating an investment proposal using the payback period method.Cash inflows are expected to be $80 000 in year 1,$120 000 in year 2,$150 000 in year 3,and $180 000 in year 4.The initial investment required is $380 000.Assuming even cash inflows throughout each year,the payback period is:

A) 3 years.
B) 3.17 years.
C) 3.34 years.
D) 3.47 years.