Oriental Corporation has gathered the following data on a proposed investment project Ignore income taxes.:

Investment in depreciable equipment $

Annual net cash flows $

Life of the equipment years

Salvage value $

Discount rate

The company uses straightline depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.

 

The payback period for the investment would be?

Answer rating: 100% (QA)

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