Logy Inc Is Evaluating Two Possible Investments in Depreciable Plant Assets

question 122

Multiple Choice

Logy Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available: $$\begin{array} { | l | r | r | } \hline & \text { Investment A } & \text { Investment B } \\\hline \text { Initial capital investment } & \$ 100,000 & \$ 150,000 \\\hline \text { Estimated useful life } & 10 \text { years } & 10 \text { years } \\\hline \text { Estimated residual value } & 0 & \$ 20,000 \\\hline \text { Estimated annual net cash inflow for 10 years } & \$ 20,000 & \$ 40,000 \\\hline \text { Required rate of return } & 10 \% & 12 \% \\\hline\end{array}$$
-Calculate the payback period for Investment B.

• A) 3 years
• B) 2 years
• C) 4 years
• D) 5 years

---

Definitions:

Gender Dysphoria

A condition where there is a conflict between a person's physical or assigned gender and the gender with which they identify.

Gender Dysphoria

A psychological condition where a person experiences distress because their gender identity does not match their biological sex.

Testosterone Therapy

A medical treatment aimed at increasing testosterone levels in individuals where it is abnormally low, often addressing symptoms of hypogonadism.