The management of Lanzilotta Corporation is considering a project that would require an investment of $213,000 and would last for 6 years. The annual net operating income from the project would be $105,000, which includes depreciation of $28,000. The scrap value of the project's assets at the end of the project would be $25,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)
The management of Lanzilotta Corporation is considering a project that would require an investment of $213,000 and would last for 6 years. The annual net operating income from the project would be $105,000, which includes depreciation of $28,000. The scrap value of the project's assets at the end of the project would be $25,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)
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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Transcribed Image Text:The management of Lanzilotta Corporation is considering a project that would require an investment of $213,000 and would last for 6 years. The annual net operating income from the project would be $105,000, which
includes depreciation of $28,000. The scrap value of the project's assets at the end of the project would be $25,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to
(Ignore income taxes.): (Round your answer to 1 decimal place.)
Multiple Choice
16 years
20 years
1.3 years
28 years
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