(Ignore Income Taxes in This Problem

Multiple Choice

(Ignore income taxes in this problem.) Chee Corporation has gathered the following data on a proposed investment project:

The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment.

-The payback period for the investment is closest to:

A) 0.2 years
B) 2.5 years
C) 4.8 years
D) 5.0 years