Neighbors Corporation is considering a project that would require an investment of $279,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows: The scrap value of the project's assets at the end of the project would be $15,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:
A)2.0 years
B)2.6 years
C)2.5 years
D)1.9 years

Question

Neighbors Corporation is considering a project that would require an investment of $279,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows:  The scrap value of the project's assets at the end of the project would be $15,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:
A)2.0 years 
B)2.6 years 
C)2.5 years 
D)1.9 years

Quizplus · Accepted Answer

The Answer of Neighbors Corporation is considering a project that would require an investment of $279,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows:  The scrap value of the project's assets at the end of the project would be $15,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:
A)2.0 years 
B)2.6 years 
C)2.5 years 
D)1.9 years

Neighbors Corporation Is Considering a Project That Would Require an Investment