Lincoln Transportation Services is considering a capital expenditure proposal for the improvement of its distribution centre. The project would require a capital investment of $240,000; have a 10 year useful life with no residual value and generate net cash flows of $60,000 per year Lincoln uses the straight line method of amortization on all capital assets.
Compute the payback period for this proposal.

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The Answer of Lincoln Transportation Services is considering a capital expenditure proposal for the improvement of its distribution centre. The project would require a capital investment of $240,000; have a 10 year useful life with no residual value and generate net cash flows of $60,000 per year Lincoln uses the straight line method of amortization on all capital assets.
Compute the payback period for this proposal.

Lincoln Transportation Services Is Considering a Capital Expenditure Proposal for the Improvement