A company is evaluating 3 possible investments. Each uses straight-line depreciation. See data below: What is the payback period for Project A?

Name: A company is evaluating 3 possible investments. Each uses straight-line depreciation. See data below: What is the payback period for Project A?
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Question

A company is evaluating 3 possible investments. Each uses straight-line depreciation. See data below:  What is the payback period for Project A?

Quizplus · Accepted Answer

Project A has a payback period of 4 years, while Projects B and C have longer payback periods of 5 years and 6 years, respectively. Therefore, Project A is the best choice as it has the shortest payback period.

A Company Is Evaluating 3 Possible Investments