Landmark Prints Is Considering an Investment in New Equipment Costing

question 47

Multiple Choice

Landmark Prints is considering an investment in new equipment costing $520,000.The equipment will be depreciated on a straight-line basis over a five-year life and is expected to generate net cash inflows of $128,000 the first year,$160,000 the second year,and $154,000 every year thereafter until the fifth year.What is the payback period for this investment? The residual value is zero.(Round your answer to two decimal places.)

• A) 4.50 years
• B) 3.51 years
• C) 2.86 years
• D) 3.06 years

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