Accounting · Payback Period
Tree Co. is considering Project P, which requires an initial capital investment of $60,000 and generates the following cash profits before depreciation: - Year 1: $20,000 - Year 2: $30,000 - Year 3: $40,000 - Year 4: $50,000 What is Project P's payback period?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 12.25 years✓
- 22.00 years
- 33.00 years
- 42.75 years
Correct answer
2.25 years
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