(Ignore income taxes in this problem.) Jarvey Company is studying a project that would have a ten-year life and would require a $450,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project:
The company's required rate of return is 12%. What is the payback period for this project?

Question

(Ignore income taxes in this problem.) Jarvey Company is studying a project that would have a ten-year life and would require a $450,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project: 
The company's required rate of return is 12%. What is the payback period for this project?

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The Answer of (Ignore income taxes in this problem.) Jarvey Company is studying a project that would have a ten-year life and would require a $450,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project: 
The company's required rate of return is 12%. What is the payback period for this project?

(Ignore Income Taxes in This Problem