A company is evaluating three possible investments. The following information is provided by the company: Project...

 

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A company is evaluating three possible investments. The following information is provided by the company: Project A Project B Project C Investment $230,000 $50,000 $230,000 Residual value 0 18,000 20,000 Net cash inflows: Year 1 58,000 36,000 94,000 Year 2 58,000 27,000 64,000 Year 3 58,000 23,000 74,000 Year 4 58,000 20,000 Year 5 58,000 0 34,000 0 What is the payback period for Project A? (Assume that the company uses the straight-line depreciation method.) (Round your answer to two decimal places.) A company is evaluating three possible investments. The following information is provided by the company: Project A Project B Project C Investment $230,000 $50,000 $230,000 Residual value 0 18,000 20,000 Net cash inflows: Year 1 58,000 36,000 94,000 Year 2 58,000 27,000 64,000 Year 3 58,000 23,000 74,000 Year 4 58,000 20,000 Year 5 58,000 0 34,000 0 What is the payback period for Project A? (Assume that the company uses the straight-line depreciation method.) (Round your answer to two decimal places.)

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Answer To calculate the payback period for Project A we need to determine the time it takes for the ... View the full answer