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28 Sep 2019
Trinitron Enterprises is considering a project that requires aninitial investment of $216,000 with an estimated useful life of 10years and no salvage value. The project will generate $7,200 of netincome each year. The asset will be depreciated using straight-linedepreciation.
The cash payback on this project
A : is 6 years.
B : cannot be computed from the information provided becausecash flows are used to compute the payback period.
C : is 7.5 years.
D : is 10 years.
Trinitron Enterprises is considering a project that requires aninitial investment of $216,000 with an estimated useful life of 10years and no salvage value. The project will generate $7,200 of netincome each year. The asset will be depreciated using straight-linedepreciation.
The cash payback on this project
A : is 6 years.
B : cannot be computed from the information provided becausecash flows are used to compute the payback period.
C : is 7.5 years.
D : is 10 years.
Jamar FerryLv2
28 Sep 2019