Dragonfly,Inc

question 40

Multiple Choice

Dragonfly,Inc.is evaluating two possible investments in depreciable plant assets.The company uses the straight-line method of depreciation.The following information is available:

Calculate the payback period for Investment A.(Round your answer to two decimal places. )

• A)2)22 years
• B)2)89 years
• C)1)00 year
• D)3)61 years

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Definitions:

Note Receivable

A financial asset representing a written promise for the repayment of a loan or debt within a specific timeframe.

Note Payable

A written promise to pay a specified amount of money, usually including interest, at a future date.

Bank Statement

A summary of financial transactions that occurred over a period of time on a bank account held by a person or business with a financial institution.

Depositor's Account

A banking account that holds funds deposited by an individual or entity.