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?
A) 2 years
B) 3 years
C) 4.28 years
D) 9 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?
A) 2 years 
B) 3 years 
C) 4.28 years 
D) 9 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?
A) 2 years 
B) 3 years 
C) 4.28 years 
D) 9 years

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