An investment project is expected to yield $10,000 in annual revenues, has $2,000 in fixed costs per year, and requires an initial investment of $5,000

Finance Mar 13, 2021

An investment project is expected to yield $10,000 in annual revenues, has $2,000 in fixed costs per year, and requires an initial investment of $5,000. Given a cost of goods sold of 60 percent of sales, what is the payback period in years?

1. 2.50
2. 5.00
3. 2.00
4. 1.25

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