The management of Lanzilotta Corporation is considering a project that would require an investment of $208,000 and would last for 6 years. The annual net operating income from the project would be $104,000, which includes depreciation of $15,000, The scrap value of the project's assets at the end of the project would be $24,000. 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 17 years 20 years 1.5 years 29 years

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The management of Lanzilotta Corporation is considering a project that would reguire an investment of $208,000 and would last for 6 years. The annual net operating income from the
project would be $104,000, which includes depreciation of $15,000, The scrap value of the project's assets at the end of the project would be $24,000. 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
1.7 years
20 years
1.5 years
29 years
O O
Transcribed Image Text:The management of Lanzilotta Corporation is considering a project that would reguire an investment of $208,000 and would last for 6 years. The annual net operating income from the project would be $104,000, which includes depreciation of $15,000, The scrap value of the project's assets at the end of the project would be $24,000. 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 1.7 years 20 years 1.5 years 29 years O O
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