If an Asset Cost $270000 and Is Expected to Have

question 88

Multiple Choice

If an asset cost $270000 and is expected to have a $60000 salvage value at the end of its twelve-year life and generates annual net cash inflows of $40000 each year the cash payback period is

• A) 2.7 years.
• B) 8.25 years.
• C) 6.75 years.
• D) 5.25 years.