# 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

https://brainmass.com/business/payback-period-and-discounted-payback-period/calculate-the-payback-period-for-a-set-of-cash-flows-2757

#### Solution Preview

In year 0 the outflow is = $2,500

In year 1 the inflow is = $300, balance ...

#### Solution Summary

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

$2.49