Investment A

Investment B

Investment

$680,000

$120,000

Useful life

10 years

10 years

Estimated annual net

cash inflows for 8 years

$150,000

$27,000

Residual value

$30,000

$0

Depreciation method

Straightline

Straightline

Required rate of return

14%

10%

What is the payback period for InvestmentB(in years)?

Group of answer choices

5.44

6.00

4.44

4.00