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Question:

A project manager has been asked to estimate the payback period for her project. The project’s investment is $500,000, with expected cash inflow of $50,000 for the first two quarters and $100,000 for every quarter thereafter. Select the payback period?

A 18 months
Explaination

The project will recoup its investment by month 18. To calculate, simply total the cash reached when you hit the amount of total investment.