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The following details are provided by a manufacturing company: Product line Investment $1,100,000 Useful life 12 years Estimated annual net cash inflows for first year
The following details are provided by a manufacturing company: Product line Investment $1,100,000 Useful life 12 years Estimated annual net cash inflows for first year $400,000 Estimated annual net cash inflows for second year $390,000 Estimated annual net cash inflows for next ten years $380,000 Residual value $70,000 Depreciation method Straight-line Required rate of return 14% Calculate the payback period for the investment. (Round your answer to two decimal places.)
A. 2.82 years B. 2.75 years C. 2.77 years D. 2.55 years
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