Payback Solution(1) 0 3(a) 5 40K(b)10K 12K 15K 10K(d)7K 10K 22K 37Kc)47K54K Cumulative Inflows PBP =a+(b-c)/d =3+(40-37)/10 =3+(3)/10 = 3.3 Years 13-713-7 10 K 22 K 37 K(c) 47 K 54 K Payback Solution (#1) PBP = a + ( b - c ) / d = 3 + (40 - 37) / 10 = 3 + (3) / 10 = 3.3 Years 0 1 2 3 4 5 -40 K 10 K 12 K 15 K 10 K 7 K Cumulative Inflows (a) (-b) (d)