Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 8 years with no salvage value at the end of the 8 years. Ataxia's internal rate of return on this equipment is 9%. Ataxia's discount rate is also 9%. The payback period on this equipment is closest to (Ignore income taxes.): Click here to view Exhibit 14B-1 and Exhibit 14B-2 to determine the appropriate discount factor(s) using the tables provided. Multiple Choice 8 years 5.535 years 4 years 6.635 years

Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 8 years with no salvage value at the end of the 8 years. Ataxia's internal rate of return on this equipment is 9%. Ataxia's discount rate is also 9%. The payback period on this equipment is closest to (Ignore income taxes.): Click here to view Exhibit 14B-1 and Exhibit 14B-2 to determine the appropriate discount factor(s) using the tables provided. Multiple Choice 8 years 5.535 years 4 years 6.635 years

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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Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 8 years with no salvage value at the end of
the 8 years. Ataxia's internal rate of return on this equipment is 9%. Ataxia's discount rate is also 9%. The payback period on this equipment is closest to (Ignore income taxes.):
Click here to view Exhibit 14B-1 and Exhibit 14B-2 to determine the appropriate discount factor(s) using the tables provided.
Multiple Choice
8 years
5.535 years
4 years
6.635 years

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