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(Ignore income taxes in this problem.) Oriental Company has gathered the following data on a proposed investment project: Investment in depreciable equipment $400,000 Annual net
(Ignore income taxes in this problem.) Oriental Company has gathered the following data on a proposed investment project:
Investment in depreciable equipment | $400,000 |
Annual net cash flows | $50,000 |
Life of the equipment | 12 years |
Salvage value | $0 |
Discount rate | 12.00% |
The company uses straight-line depreciation on all equipment. |
The payback period for the investment would be: |
4.08 years | |
0.13 years | |
12 years | |
8.00 years |
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