Final answer:
The payback period for Park Company's investment of $35,000 with annual net cash flows of $14,000 is 2.5 years.
Step-by-step explanation:
The payback period is a financial measure that helps determine the length of time it takes for an investment to generate cash flows sufficient to recover the original investment cost.
For Park Company, which is considering an investment of $35,000 that provides net cash flows of $14,000 annually, the payback period can be calculated by dividing the investment cost by the annual cash flow.
To find the payback period for Park Company's investment, you would divide $35,000 by $14,000, which gives a result of 2.5 years.
This means it would take 2.5 years for the company to recover its initial investment from the net cash flows.