Pillows Incorporated was considering an investment in the following project:

Required initial investment $ 1,030,000

Net annual after-tax cash inflow $ 160,000

Annual depreciation expense (($1,030,000 − $174,000)/20 years) $ 42,800

Estimated salvage value $ 174,000

Life of the project in years 20 Assume that cash inflows occur evenly throughout the year. calculate The estimated payback period in years (rounded to one decimal place) for the proposed project .

Answer rating: 100% (QA)

To calculate the payback period we need to find out how long it takes for the c... View the full answer