An Initial Investment of $270,000 Is Expected to Generate $120,000

question 70

Multiple Choice

An initial investment of $270,000 is expected to generate $120,000 in annual cost savings over the asset's expected 3- year life. Assume straight- line depreciation and ignore income taxes. The payback period is:

• A) 2.40 years
• B) 3.00 years
• C) 0.75 years
• D) 2.25 years

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