Following is information pertaining to an investment made in an equipment by Dune Incorporation. Using the given information calculate the payback period of the investmer Round the answer to 2 decimal places. Initial Investment Useful life $225,000 15 years $12,500 Salvage value Annual income from investment $17,300 Cost of capital 12%
Following is information pertaining to an investment made in an equipment by Dune Incorporation. Using the given information calculate the payback period of the investmer Round the answer to 2 decimal places. Initial Investment Useful life $225,000 15 years $12,500 Salvage value Annual income from investment $17,300 Cost of capital 12%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Following is information pertaining to an investment made in an equipment by Dune Incorporation. Using the given information calculate the payback period of the investment.
Round the answer to 2 decimal places.
Initial Investment
$225,000
Useful life
15 years
$12,500
Salvage value
Annual income from investment $17,300
Cost of capital
12%
11.11 years
8.14 years
13.01 years
12 years
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