Harrison Corporation is studying a project that would have an eight-year life and would require a $300,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project: The company's required rate of return is 10%. The payback period for this project is closest to:
A)3 years
B)2 years
C)2.5 years
D)2.67 years

Question

Harrison Corporation is studying a project that would have an eight-year life and would require a $300,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project:  The company's required rate of return is 10%. The payback period for this project is closest to:
A)3 years 
B)2 years 
C)2.5 years 
D)2.67 years

Quizplus · Accepted Answer

The Answer of Harrison Corporation is studying a project that would have an eight-year life and would require a $300,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project:  The company's required rate of return is 10%. The payback period for this project is closest to:
A)3 years 
B)2 years 
C)2.5 years 
D)2.67 years

Harrison Corporation Is Studying a Project That Would Have an Eight-Year