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    determining the payback period

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    3. I have a project that will cost $150,000 to start (implementation costs) and there is no terminal cash flow. The operating cash flows over the next 5 years are as follows:

    Revenue Operating Costs
    Year 1 $25,000 $35,000
    Year 2 55,000 30,000
    Year 3 85,000 35,000
    Year 4 100,000 40,000
    Year 5 125,000 50,000
    What is the payback period?

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    Calculating the payback period

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