BRIEF EXERCISE 10-6 Calculating the Payback Period [LO2 - CC11] Jasmine Inc. is evaluating an investment of $300,000 in earth moving equipment. Management anticipates net cash savings of $100,000 in year 1. The savings will increase by 40% in year 2 and then increase by another 50% in year 3. The minimum desired rate of return is 15%. hs Required: What is the payback period for this investment?

Calculating the Payback Period [LO2 - CC11] Jasmine Inc, is evaluating an investment of $300,000 in earth moving equipment. Management anticipates net cash savings of $100,000 in year 1 . The savings will increase by 40% in year 2 and then increase by another 50% in year 3 . The minimum desired rate of return is 15%. Required: What is the payback period for this investment