Question
Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 610,000 Annual net cash flows $ 88,000 Life
Oriental Corporation has gathered the following data on a proposed investment project:
| Investment in depreciable equipment | $ | 610,000 | |
| Annual net cash flows | $ | 88,000 | |
| Life of the equipment | 16 | years | |
| Salvage value | $ | 0 | |
| Discount rate | 10 | % | |
The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.
The payback period for the investment would be:
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Concept Audits A Philosophical Method
Authors: Nicholas Rescher
1st Edition
1498540392, 978-1498540391
