Zephyr Resorts is considering investing in a project that has a net investment of $159,965. This project will return positive net cash flows annually for the next 5 years of $50,000 per year. Zephyr Resorts requires a 10% return on all of its investments.   The payback period of this investment is ________ years A)  1 B)  2 C)  5   D)  6

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
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Zephyr Resorts is considering investing in a project that has a net investment of $159,965. This project will return positive net cash flows annually for the next 5 years of $50,000 per year.

Zephyr Resorts requires a 10% return on all of its investments.

 

The payback period of this investment is ________ years

  1. A)  1
  2. B)  2
  3. C)  5
  4.   D)  6
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