Wildhorse Company is going to invest in a new product line. Wildhorse estimates that the net...

 

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Wildhorse Company is going to invest in a new product line. Wildhorse estimates that the net cash flows from the new line will be $30500 per year. The initial investment required to implement the new line will be $640500. The company requires a rate of return of 8% and the new product line is expected to span a time period of 15 years. What is the payback period of the new product line? Wildhorse Company is going to invest in a new product line. Wildhorse estimates that the net cash flows from the new line will be $30500 per year. The initial investment required to implement the new line will be $640500. The company requires a rate of return of 8% and the new product line is expected to span a time period of 15 years. What is the payback period of the new product line?

Answer rating: 100% (QA)

The payback period is the time it takes for a project to recover its initial investme... View the full answer