The management of Lanzilotta Corporation is considering a project that would require an investment of $213,000 and would last for 6 years. The annual net operating income from the project would be $105,000, which includes depreciation of $28,000. The scrap value of the project's assets at the end of the project would be $25,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)

The management of Lanzilotta Corporation is considering a project that would require an investment of $213,000 and would last for 6 years. The annual net operating income from the project would be $105,000, which includes depreciation of $28,000. The scrap value of the project's assets at the end of the project would be $25,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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