Consider this date: Project A: Initial Investment Outlay Year 1 Year 2 Year 3 Year 4 Year 5 Net Cost of New ($800,000) $600,000 $450,000 $300,000 $200,000 Additional Revenue $100,00,000 180,000 135,000 90,000 60,000 Additional Operating Costs 30,000 Depreciation: 160.000 160.000 160.000 160.000 160.000 260,000 155,000 50,000 -20,000 EBT -90,000 -91,000 -54,250 -17,500 7,000 Less Tax at 35% 31,500 $-13,000 Net Income $169,999 $100,750 $32,500 $-58,500 D Calculate the Traditional Payback for Project A 04.02 years O 3.92 years. O 4.52 years O 3.12 years Previous Next