Explore BrainMass

Payback Period

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

4. Stern Associates is considering a project that has the following cash flow data. What is the project's payback?
Year 0 1 2 3 4 5
Cash flows -$950 $300 $310 $320 $330 $340

3.06 years
3.24 years
2.97 years
3.70 years
3.49 years

© BrainMass Inc. brainmass.com December 20, 2018, 4:59 am ad1c9bdddf

Solution Summary

The solution goes into a great amount of detail regarding the question being asked. Step by step explanation is provided for each part of the question which makes it very easy to follow along for anyone with just a basic understanding of the concepts. Overall, an excellent response to the question being asked.