Answer:
d. 4 years
Explanation:
Cash payback period is the time on which the company receive from the investment the same amount of money investment
cash fows = investment
regardless of discount or interest rates or changes in the value of the equipment. It is just answerng:
I put 100,000 dollars in the project, when I get 100,000 dollars back ?
The usual formula will be:
[tex]\frac{investment}{cash \: flow} = payback[/tex]
380,000/ 95,000 = 4 years