Payback Period Assignment

Given the following cash flows for a proposed capital investment project, calculate the payback period.

Year Cash Flow
0 -$40,000
1 15,000
2 15,000
3 15,000
4 15,000
5 10,000
6 10,000

Question 4 options:

5.50 years
3.33 years
4.33 years
2.67 years

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