If the initial investment is $4000 and the annual cash inflow is $500, what is the payback period?

A) 20 years
B) 8 years
C) 4 years
D) 2 years

Payback Period

The duration required to recoup the cost of an investment, indicating the time it takes for an investment to become profitable.

Cash Inflow

The total amount of money being transferred into a business, typically from operations, financing, and investing activities.

Initial Investment

The initial amount of money spent to start a business venture or project, including costs for assets, resources, and initial operating expenses.