Nestor Company is considering the purchase of an asset for $100,000.It is expected to produce the following net cash flows.The cash flows occur evenly throughout each year. Compute the payback period for this investment.(Round to two decimal places. )
A)2.85 years.
B)2.57 years.
C)3.00 years.
D)2.50 years.
E)3.62 years.

Question

Nestor Company is considering the purchase of an asset for $100,000.It is expected to produce the following net cash flows.The cash flows occur evenly throughout each year.  Compute the payback period for this investment.(Round to two decimal places. )
A)2.85 years. 
B)2.57 years. 
C)3.00 years. 
D)2.50 years. 
E)3.62 years.

Quizplus · Accepted Answer

The Answer of Nestor Company is considering the purchase of an asset for $100,000.It is expected to produce the following net cash flows.The cash flows occur evenly throughout each year.  Compute the payback period for this investment.(Round to two decimal places. )
A)2.85 years. 
B)2.57 years. 
C)3.00 years. 
D)2.50 years. 
E)3.62 years.

Nestor Company Is Considering the Purchase of an Asset for $100,000.It