Jarvey Company is studying a project that would have a ten-year life and would require a $450,000 investment in equipment that has no salvage value.The project would provide net income each year as follows for the life of the project:
The company's required rate of return is 12%.What is the payback period for this project? (Ignore income taxes in this problem. )
A) 2.00 years.
B) 3.00 years.
C) 4.28 years.
D) 9.00 years.

Question

Jarvey Company is studying a project that would have a ten-year life and would require a $450,000 investment in equipment that has no salvage value.The project would provide net income each year as follows for the life of the project: 
The company's required rate of return is 12%.What is the payback period for this project? (Ignore income taxes in this problem. )
A) 2.00 years. 
B) 3.00 years. 
C) 4.28 years. 
D) 9.00 years.

Quizplus · Accepted Answer

The Answer of Jarvey Company is studying a project that would have a ten-year life and would require a $450,000 investment in equipment that has no salvage value.The project would provide net income each year as follows for the life of the project: 
The company's required rate of return is 12%.What is the payback period for this project? (Ignore income taxes in this problem. )
A) 2.00 years. 
B) 3.00 years. 
C) 4.28 years. 
D) 9.00 years.

Jarvey Company Is Studying a Project That Would Have a Ten-Year