Answer:
It will take 3 years and 192 days to cover for the initial investment.
Explanation:
Giving the following information:
Initial investment= $23,500
Cash fow= $9,300
Time period= 7 years
The payback period is the time required to cover for the initial investment.
Year 1= 9,300 - 23,500= - 14,200
Year 2= 9,300 - 14,200= - 4,900
Year 3= 9,300 - 4,900= 4,400
To be more accurate:
(4,900/9,300)*365= 192
It will take 3 years and 192 days to cover for the initial investment.
