Answer:
3 years
Explanation:
The payback period is reached when the company's cash flow resulting from an investment equal the amount of that initial investment. Since, in this case, no expected rate of return is mentioned, the payback period can be calculated without interest as follows:
[tex]payback = \frac{investment}{cash\ flow/year} \\payback = \frac{\$45,000}{\$15,000} \\payback = 3\ years[/tex]
