QS 24-5 payback period LO P1

Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) to me questo Project A requires a $445,000 initial investment for new machinery with a five-year life and a salvage value of $45,000. The company uses straight-line depreciation. Project A is expected to yield annual net income of $23,100 per year for the next five years. QS 24-5 Payback period LO P1 Compute Project A's payback period. Choose Numerator: Cost of investment 445,000 Payback Period Choose Denominator: = / Annual net cash flow = $ 103,100 = Payback Period Payback period 4.32 years