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.
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.
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.
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