LG Company is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available: OA. B. OC. D. Initial capital investment Estimated useful life Estimated residual value Estimated annual net cash inflow For 3 years Required rate of return How long is the payback period for Investment B? 2.40 years 4.00 years 10.67 years 3.63 years Investment Investment A B $112,500 5 years $10,000 $25,000 10% $160,000 5 years $15,000 $40,000 12%

LG Company is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available: How long is the payl A. 2.40 years B. 4.00 years C. 10.67 years D. 3.63 years