A. 3.34 years
B. 4.34 years
C. 5.34 years
D. 6.34 years
✅ The correct answer is option A.
Payback period = Net initial investment ÷ Uniform increases yearly cash flows
= $6850000 ÷ $2050000
= 3.34 years.
Payback period = Net initial investment ÷ Uniform increases yearly cash flows
= $6850000 ÷ $2050000
= 3.34 years.