Cost of new project is 1500000 annual cash flow from project is 150000 payback period is 1- 10 years 2- 5 years 3- 15 years 4- 7 years

choise 1 is correct: 10 years

Initial / annual flow =10 years payback period

1500,000/150,000 =10 years so choice #1 is the correct answer