Juniper Corporation is considering two alternative investment proposals with the following data: Investment Proposal X $890,000...

Transcribed Image Text:

Juniper Corporation is considering two alternative investment proposals with the following data: Investment Proposal X $890,000 Proposal Y $514,000 Useful life Estimated annual net cash inflows for 9 years 9 years $100,000 9 years $74,000 Residual value Depreciation method $41.000 $- Straight-line Straight-line Required rate of return 15% 13% How long is the payback period for Proposal Y? A. 6.95 years OB. 8.9 years OC. 21.71 years D. 12.54 years empts of co of Juniper Corporation is considering two alternative investment proposals with the following data: Investment Proposal X $890,000 Proposal Y $514,000 Useful life Estimated annual net cash inflows for 9 years 9 years $100,000 9 years $74,000 Residual value Depreciation method $41.000 $- Straight-line Straight-line Required rate of return 15% 13% How long is the payback period for Proposal Y? A. 6.95 years OB. 8.9 years OC. 21.71 years D. 12.54 years empts of co of