Question
Greenbriar Cotton Mill is spending $330,000 to update its facility. The company estimates that this investment will improve its cash inflows by $56,500 a year
Greenbriar Cotton Mill is spending $330,000 to update its facility. The company estimates that this investment will improve its cash inflows by $56,500 a year for 10 years. What is the payback period?
| A. | 4.03 years |
| B. | 4.95 years |
| C. | 5.48 years |
| D. | 5.84 years |
| E. | The project never pays back. |
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Public Finance And Public Policy
Authors: Arye L. Hillman
2nd Edition
0521738059, 978-0521738057
