(Ignore income taxes in this problem.)The management of Truelove Corporation is considering a project that would require an initial investment of $321,000 and would last for 7 years.The annual net operating income from the project would be $28,000,including depreciation of $42,000.At the end of the project,the scrap value of the project's assets would be $27,000.
Required:
Determine the payback period of the project.Show your work!

Question

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The Answer of (Ignore income taxes in this problem.)The management of Truelove Corporation is considering a project that would require an initial investment of $321,000 and would last for 7 years.The annual net operating income from the project would be $28,000,including depreciation of $42,000.At the end of the project,the scrap value of the project's assets would be $27,000.
Required:
Determine the payback period of the project.Show your work!

(Ignore Income Taxes in This Problem