Buxton Corporation is evaluating a capital investment project which would require an initial investment of $240,000 to purchase new machinery. The annual revenues and expenses generated specifically by this project each year during the project's nine year life would be:
The residual value of the machinery at the end of the nine years would be $15,000. The payback period of this potential project in years would be closest to
A) 2.6.
B) 3.6.
C) 3.1.
D) 1.4.
Correct Answer:
Verified
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