Sunnyside Corporation is evaluating a capital investment project which would require an initial investment of $200,000 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 $18,000. The payback period of this potential project in years would be closest to
A) 1) 8.
B) 2) 3.
C) 3) 2.
D) 1) 20.
Correct Answer:
Verified
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