Company X invested in a piece of equipment with an initial cost of $80,000. The equipment is expected to provide net cash flows of $18,000 per year with an estimated life of 10 years and no salvage value. The company's cost of capital is 14%. The payback period using the modified payback method and without considering the impact of taxes is:

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The Answer of Company X invested in a piece of equipment with an initial cost of $80,000. The equipment is expected to provide net cash flows of $18,000 per year with an estimated life of 10 years and no salvage value. The company's cost of capital is 14%. The payback period using the modified payback method and without considering the impact of taxes is:

Company X Invested in a Piece of Equipment with an Initial