Following is information pertaining to an investment made in an equipment Incorporation. Using the given information calculate the payback period of the in Round the answer to 2 decimal places. Initial Investment $210,000 Useful life Salvage Value Annual net income generated Cost of Capital 10 years $25,000 $18,900 11%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Following is information pertaining to an investment made in an equipment by Sunset
Incorporation. Using the given information calculate the payback period of the investment.
Round the answer to 2 decimal places.
Initial Investment
$210,000
10 years
Useful life
Salvage Value
Annual net income generated|
Cost of Capital
$25,000
$18,900
11%
a. 9 years
b. 5.16 years
с. 5.61 years
d. 11.11 years
Answer
OA
OB
Oc
OD
Submit
Transcribed Image Text:Following is information pertaining to an investment made in an equipment by Sunset Incorporation. Using the given information calculate the payback period of the investment. Round the answer to 2 decimal places. Initial Investment $210,000 10 years Useful life Salvage Value Annual net income generated| Cost of Capital $25,000 $18,900 11% a. 9 years b. 5.16 years с. 5.61 years d. 11.11 years Answer OA OB Oc OD Submit
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