he Zinger Corporation is considering an investment that has the following data: Year 1 Year 2 Year 3 Year 4 Year 5 $8,000 $3,000 Investment Cash inflow $2,000 $2,000 $5,000 $4,000 $4,000 Cash inflows occur evenly throughout the year. The payback period for this investment is: A. 3.0 3. 4.0 C. 3.5 0 45

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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The Zinger Corporation is considering an investment that has the following data:
Year 1 Year 2 Year 3 Year 4 Year 5
$8,000 $3,000
Investment
Cash inflow $2,000 $2,000 $5,000 $4,000
$4,000
Cash inflows occur evenly throughout the year. The payback period for this investment is:
A. 3.0
B. 4.0
C. 3.5
D. 4.5
Transcribed Image Text:The Zinger Corporation is considering an investment that has the following data: Year 1 Year 2 Year 3 Year 4 Year 5 $8,000 $3,000 Investment Cash inflow $2,000 $2,000 $5,000 $4,000 $4,000 Cash inflows occur evenly throughout the year. The payback period for this investment is: A. 3.0 B. 4.0 C. 3.5 D. 4.5
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