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Chee Corporation has gathered the following data on a proposed investment project: (Ignore income taxes in this problem.) Investment required in equipment $680,000 Annual cash
Chee Corporation has gathered the following data on a proposed investment project: (Ignore income taxes in this problem.)
| Investment required in equipment | $680,000 |
| Annual cash inflows | $66,000 |
| Salvage value | $0 |
| Life of the investment | 20 years |
| Required rate of return | 7% |
| The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment. |
The payback period for the investment is closest to: |
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Management Accounting
Authors: Anthony A Atkinson, Robert S Kaplan
5th Edition
136005314, 978-0136005315
