Calculating Payback Period for Investment

In the context of capital budgeting, companies often assess potential investments using specific criteria to determine their viability. One such criterion is the Payback Period, which measures the time it takes for an investment to recover its initial cost from its cash inflows. This is a simple yet popular method for investment decision making.

Consider a project that requires an initial investment of $100,000 and is expected to generate cash inflows of $25,000 per year. Based on these cash flows, what is the Payback Period for this investment?