Haven Company is considering the construction of a new parking lot. It will cost $125,000 to construct the lot. The income tax rate is 30%. Determine the payback period if the expected net annual operating cash inflows are $18,000 per year and the expected net income is $13,400.
A) 4.0 years
B) 9.9 years
C) 6.9 years
D) 9.3 years
Correct Answer:
Verified
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