A is corrent because the payback period is equal to the number of years required to recover the initial investment. An investment of $1,000 would be recovered in the middle of Year 4, or in 3.5 years.
B is incorrect because it does not represent proper computations of the payback period.
B is incorrect because it does not represent proper computations of the payback period.
D is incorrect because it does not represent proper computations of the payback period.
|
