Gander, Inc. is considering two projects with the following cash flows. Year                             Project X                     Project Y    0                               ($100,000)                   ($100,000)    1                                    40,000                          50,000    2                                    40.000                            0    3                                    40,000                            0    4                                    40,000                            0    5                                    40,000                        250,000 Gander uses the payback period method of capital budgeting and accepts only projects with payback periods of 3 years or less.  without using Excel please explain to me why the payback period for project y is 4.2 years

Question
  1. Gander, Inc. is considering two projects with the following cash flows.

Year                             Project X                     Project Y

   0                               ($100,000)                   ($100,000)

   1                                    40,000                          50,000

   2                                    40.000                            0

   3                                    40,000                            0

   4                                    40,000                            0

   5                                    40,000                        250,000

Gander uses the payback period method of capital budgeting and accepts only projects with payback periods of 3 years or less. 

without using Excel please explain to me why the payback period for project y is 4.2 years

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