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A company can purchase a piece of equipment for $5,730. The equipment has a three-year life...

A company can purchase a piece of equipment for $5,730. The equipment has a three-year life and will produce cash inflows of $1,850 in each of the first and second years and $4,210 in the third year. What is the project's simple payback period (in number of years) assuming that the cash inflows are received uniformly over each respective year?

2.42

2.48

2.54

2.61

2.67
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Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

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