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to First Choice Carpets is considering purchasing new weaving equipment costing $718,000. The company's management has estimated that the equipment will generate cash inflows as
to First Choice Carpets is considering purchasing new weaving equipment costing $718,000. The company's management has estimated that the equipment will generate cash inflows as follows: Year 1 2 $214,000 214,000 250,000 250,000 170,000 4 Considering the residual value is zero, calculate the payback period. (Round your answer to two decimal places.) O A. 3.83 years B. 3.64 years O C. 4.34 years ao D. 3.16 years
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