Wasson Corporation Is Considering an Investment Project Costing $520 000

question 60

Multiple Choice

Wasson Corporation is considering an investment project costing $520 000. The project is estimated to have an eight- year life, generate annual cash flows of $120 000 and have a salvage value of $40 000 after eight years. What is the project's payback period?

• A)2.8 years
• B)6.5 years
• C)4.3 years
• D)4 years

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