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Calculate the payback period for a set of cash flows

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What is the payback period for the following set of cash flows?

Year 0 Cash Flow is -$2,500;
year 1 cash flow is $300;
year 2 cash flow is $1500;
year 3 cash flow is $900;
year 4 cash flow is $300

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Solution Summary

The solution shows the outflows and inflows for each year, and then explains the length of the payback period.

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In year 0 the outflow is = $2,500
In year 1 the inflow is = $300, balance ...

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