Question
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
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
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292
