(Ignore income taxes in this problem.) Whitmarsh Corporation is considering a project that would require an initial investment of $334,000 and would last for 9 years. The incremental annual revenues and expenses for each of the 9 years would be as follows:
At the end of the project, the scrap value of the project's assets would be $10,000.
Required:
Determine the payback period of the project. Show your work!

Question

(Ignore income taxes in this problem.) Whitmarsh Corporation is considering a project that would require an initial investment of $334,000 and would last for 9 years. The incremental annual revenues and expenses for each of the 9 years would be as follows:  
At the end of the project, the scrap value of the project's assets would be $10,000.
Required:
Determine the payback period of the project. Show your work!

Quizplus · Accepted Answer

The Answer of (Ignore income taxes in this problem.) Whitmarsh Corporation is considering a project that would require an initial investment of $334,000 and would last for 9 years. The incremental annual revenues and expenses for each of the 9 years would be as follows:  
At the end of the project, the scrap value of the project's assets would be $10,000.
Required:
Determine the payback period of the project. Show your work!

(Ignore Income Taxes in This Problem