q2

E12-17A (similar to) Question Help Cafferty Products is considering acquiring a manufacturing plant. The purchase price is $1,860,000. The owners believe the plant will generate net cash inflows of $310,000 annually. It will have to be replaced in five years. To be profitable, the investment's payback period must occur before the investment's replacement date. Use the payback method to determine whether Cafferty Products should purchase this plant. First enter the formula, then calculate the payback period. Payback period Choose from any drop-down list and then click Check Answer. ? 2 parts remaining Clear All Check