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A company is evaluating three possible investments. The following information is provided by the​ company:     Project A Project B Project C Investment $238,000 $54,000 $238,000 Residual value 0 30,000 40,000 Net cash​ inflows:       Year 1 70,000 30,000 100,000 Year 2 70,000 21,000 70,000 Year 3 70,000 17,000 80,000 Year 4 70,000 14,000 40,000 Year 5 70,000 0 0   What is the payback period for Project​ A? (Assume that the company uses the straight−line depreciation​ method.) (Round your answer to two decimal​ places.)         A. 1.8 years   B. 2.4 years   C. 5.00 years   D. 3.4 years

A company is evaluating three possible investments. The following information is provided by the​ company:     Project A Project B Project C Investment $238,000 $54,000 $238,000 Residual value 0 30,000 40,000 Net cash​ inflows:       Year 1 70,000 30,000 100,000 Year 2 70,000 21,000 70,000 Year 3 70,000 17,000 80,000 Year 4 70,000 14,000 40,000 Year 5 70,000 0 0   What is the payback period for Project​ A? (Assume that the company uses the straight−line depreciation​ method.) (Round your answer to two decimal​ places.)         A. 1.8 years   B. 2.4 years   C. 5.00 years   D. 3.4 years

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A company is evaluating three possible investments. The following information is provided by the​ company:
 
 
Project A
Project B
Project C
Investment
$238,000
$54,000
$238,000
Residual value
0
30,000
40,000
Net cash​ inflows:
 
 
 
Year 1
70,000
30,000
100,000
Year 2
70,000
21,000
70,000
Year 3
70,000
17,000
80,000
Year 4
70,000
14,000
40,000
Year 5
70,000
0
0
 
What is the payback period for Project​ A? (Assume that the company uses the
straight−line
depreciation​ method.) (Round your answer to two decimal​ places.)
 
 
 
 
A.
1.8
years
 
B.
2.4
years
 
C.
5.00 years
 
D.
3.4
years
 
 
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