I need this question answer general Accounting A company is considering investing in new equipmentthat will cost the company $2,522 at time = 0. Theafter-tax cash flows are expected to be $721 eachyear for 15 years. What is the payback period?Round your answer to two decimal points.

Step 1: Define Payback PeriodThe payback period is the time required to recover a project's initial…

Answered: A company is considering investing in…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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A company is considering investing in new equipment that will cost the company $2,522 at time = 0. The after-tax cash flows are expected to be $721 each year for 15 years. What is the payback period? Round your answer to two decimal points.