(Ignore Income Taxes in This Problem

question 114

Essay

(Ignore income taxes in this problem.)The management of Truelove Corporation is considering a project that would require an initial investment of $321,000 and would last for 7 years.The annual net operating income from the project would be $28,000,including depreciation of $42,000.At the end of the project,the scrap value of the project's assets would be $27,000.
Required:
Determine the payback period of the project.Show your work!

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Definitions:

Simplify

To make something less complex or easier to understand, often used in the context of reducing mathematical expressions.

Expression

In mathematics, a combination of symbols that jointly express a quantity or can define an equation.

Simplify

Simplifying a mathematical expression or problem means breaking it down to its most basic form to make it simpler to understand or resolve.

Operation Indicated

The specific mathematical procedure or action suggested by a problem or equation.