The management of Helberg Corporation is considering a project that would require an investment of $203,000 and would last for 6 years. The annual net operating income from the project would be $103,000, which includes depreciation of $30,000. The scrap value of the project's assets at the end of the project would be $23,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:
A)1.5 years
B)2.0 years
C)1.4 years
D)1.7 years

Question

Quizplus · Accepted Answer

The Answer of The management of Helberg Corporation is considering a project that would require an investment of $203,000 and would last for 6 years. The annual net operating income from the project would be $103,000, which includes depreciation of $30,000. The scrap value of the project's assets at the end of the project would be $23,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:
A)1.5 years
B)2.0 years
C)1.4 years
D)1.7 years

The Management of Helberg Corporation Is Considering a Project That