Logan Inc.is evaluating two possible investments in depreciable plant assets.The company uses the straight-line method of depreciation.The
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Question:
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:
Investment A
Initial capital investment$100,000
Estimated useful life10years
Estimated residual value0
Estimated annual net cash inflow for10years$20,000
Required rate of return10%
Calculate the payback period for Investment A.
Thank you
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