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Oriol Inc is considering the acquisition of equipment that costs $ 360000 and has a useful life of 6 yearas with no salvage value. The
Oriol Inc is considering the acquisition of equipment that costs $ 360000 and has a useful life of 6 yearas with no salvage value. The incremental net cash flows that would be generated by the equipment are : Incremental net cash flows Year 1 $115000 Year 2 $138,000 Year 3 $95,000 Year 4 $91,000 Year 5 $133,000 Year 6 $134,000 The payback period of this investment is closest to A) 4.1 years B) 5.0 years C) 2.9 years D) 3.1 years
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