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
In year 0 the outflow is = $2,500
In year 1 the inflow is = $300, balance ...
The solution shows the outflows and inflows for each year, and then explains the length of the payback period.