Shields Company has gathered the following data on a proposed investment project Investment Required in Equipment $400,000 Annual Cash Inflows $80,000 Salvage Value $ 0 Life of the Investment 10 years Discount Rate 10 (Ignore income taxes in this problem ) The payback period for the investment is closest to which of the following A 0 2 years B 1 0 years C 3 0 years D 5 0 years

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Shields Company has gathered the following data on a proposed investment project: Investment Required in Equipment $400,000 Annual Cash Inflows $80,000 Salvage Value $-0- Life

Shields Company has gathered the following data on a proposed investment project:

Investment Required in Equipment	$400,000
Annual Cash Inflows	$80,000
Salvage Value	$-0-
Life of the Investment	10 years
Discount Rate	10%

(Ignore income taxes in this problem.)

The payback period for the investment is closest to which of the following? A. 0.2 years. B. 1.0 years. C. 3.0 years. D. 5.0 years.

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