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Logan, Inc is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available: Initial
Logan, Inc is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available: Initial capital investment Estimated useful life Estimated residual value Estimated annual net cash inflow for 10 InvestmentA Investment B $102,000$150,000 10 years $23,000 10 years years $20,000 $16,000 14% Required rate of return Calculate the payback period for Investment A. (Round your answer to two decimal places.) Select one o A 395 years 10% B. 3.04 years C: 180year D. 5.10 years
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