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Osprey Company is evaluating two possible investments in depreciable plant assets. The company uses the straightline method of depreciation. The following information is available: Osprey

Osprey Company is evaluating two possible investments in depreciable plant assets. The company uses the straightline method of depreciation. The following information is available:

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Osprey Company 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 Investment B $24,000 $150,000 Initial capital investment Estimated useful life 4 years $14,000 $8,000 4 years $14,000 $30,000 Estimated residual value Estimated annual net cash inflow Required rate of return 9% 5% How long is the payback period for Investment B? O A. 5.00 years B. 4.53 years O C. 2.14 years O D. 10.71 years

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