Dragonfly,Inc Calculate the Payback Period for Investment A

question 13

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: $$\begin{array} { | l | r | r | } \hline & \text { Investment A } & \text { Investment B } \\\hline \text { Initial capital investment } & \$ 101,000 & \$ 151,000 \\\hline \text { Estimated useful life } & 10 \text { years } & 10 \text { years } \\\hline \text { Estimated residual value } & 0 & \$ 20,000 \\\hline \text { Estimated annual net cash inflow for 10 years } & \$ 28,000 & \$ 47,000 \\\hline \text { Required rate of return } & 12 \% & 12 \% \\\hline\end{array}$$ 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

---

Definitions:

Early Childhood

A developmental stage spanning from infancy to about 8 years old, characterized by rapid physical, cognitive, and social-emotional development.

Height and Weight

The measurement of an individual's stature from head to foot and their body mass, respectively, which are often used to assess health and development.

Myelination

The process of forming a myelin sheath around the nerves, which facilitates faster transmission of electrical signals in the nervous system.

Neural Pathways

Networks of neurons in the nervous system that transmit signals between different parts of the body, crucial for the functioning of the brain and body.