Ostermeyer Corporation is considering a project that would require an initial investment of $247,000 and would last for 7 years. The incremental annual revenues and expenses for each of the 7 years would be as follows (Ignore income taxes.):
At the end of the project, the scrap value of the project's assets would be $16,000.Required:Determine the payback period of the project.

Question

Ostermeyer Corporation is considering a project that would require an initial investment of $247,000 and would last for 7 years. The incremental annual revenues and expenses for each of the 7 years would be as follows (Ignore income taxes.):
  At the end of the project, the scrap value of the project's assets would be $16,000.Required:Determine the payback period of the project.

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The Answer of Ostermeyer Corporation is considering a project that would require an initial investment of $247,000 and would last for 7 years. The incremental annual revenues and expenses for each of the 7 years would be as follows (Ignore income taxes.):
  At the end of the project, the scrap value of the project's assets would be $16,000.Required:Determine the payback period of the project.

Ostermeyer Corporation Is Considering a Project That Would Require an Initial