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(4) Sky High Company is considering the purchase of an investment of $250,000. Data related to the investment are as follows: Cash flows (at
(4) Sky High Company is considering the purchase of an investment of $250,000. Data related to the investment are as follows: Cash flows (at the end of the next 4 years) Salvage value of new investment Proceeds from disposal of old investment Investment in working capital Tax Rate 21% $125,000 $25,000 $22,000 $14,000 21% With a discount rate of 9%, what is the simple payback period of the investment? A) 2.1 years B) 2.0 years C) 1.9 years D) 1.8 yearsal 1 Cost of Goods Sold of
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