Answer:
4 years
Explanation:
The computation of the payback period is shown below:
In the payback, we analyze in how many years the invested amount is recovered
In year 0 = -$10,000
In year 1 = $1,000
In year 2 = $3,000
In year 3 = $3,000
In year 4 = $3,000
In year 5 = $100,000
In year 6 = $250,000
If we sum the first 4 year cash inflows than it would be $10,000
And, the initial investment is also $10,000
So, in 4 years, the investment amount is recovered
