Calculate the payback period (PP) for the cash flows provided in the table below. Note: The negative cash flow for year 0 is the initial investment for the project
Year Cash Flow
0 -$47,000
1 $18,000
2 $14,000
3 $12,000
A) 2.61 years
B) 3.00 years
C) 4.50 years anticipated
D) This project never fully repays its initial investment based on the information provided.
D
Explanation: D) Spend $47,000 but return only $44,000.
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