Question
Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 680,000 Annual net cash flows $ 66,000 Life
Oriental Corporation has gathered the following data on a proposed investment project:
| Investment in depreciable equipment | $ | 680,000 | |
| Annual net cash flows | $ | 66,000 | |
| Life of the equipment | 20 | years | |
| Salvage value | $ | 0 | |
| Discount rate | 7 | % | |
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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Front Office Operations And Night Audit Workbook
Authors: Patrick J. Moreo, Gail Sammons, Jim Dougan, James Dougan
1st Edition
0133987698, 978-0133987690
