Question
REM Corporation is studying a project that would have a six-year life and would require a $400,000 investment in equipment which has no salvage value.
REM Corporation is studying a project that would have a six-year life and would require a $400,000 investment in equipment which has no salvage value. REM uses straight line depreciation. The project would provide net cash flows each year as follows for the life of the project:
| Year 1 | $100,000 |
| Year 2 | $100,000 |
| Year 3 | $50,000 |
| Year 4 | $250,000 |
| Year 5 | $250,000 |
| Year 6 | $250,000 |
What is the payback period (in years)
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A Concise Course On Auditing An Authoritative Text For Stakeholders
Authors: Onyuka Felix McDubus
1st Edition
3844395415, 978-3844395419
