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Dragonfly, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available: Investment
Dragonfly, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available: Investment A Investment B Initial capital investment $101,000 $151,000 Estimated useful life 10 years 10 years Estimated residual value 0 $20,000 Estimated annual net cash inflow for 10 years $28,000 $47,000 Required rate of return 12% 12% Calculate the payback period for Investment A. (Round your answer to two decimal places.) BER O A. 1.00 year OB. 2.22 years O C. 3.61 years OD. 2.89 years
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