Matthew Corporation Is Adding a New Product Line That Will

question 103

Multiple Choice

Matthew Corporation is adding a new product line that will require an investment of $218,000. The product line is estimated to generate cash inflows of $32,000 the first year, $18,000 the second year, and $21,000 each year thereafter for ten more years. What is the payback period?

• A)11.17 years
• B)8)56 years
• C)10.00 years
• D)10.42 years