Neighbors Corporation Is Considering a Project That Would Require an Investment

question 105

Multiple Choice

Neighbors Corporation is considering a project that would require an investment of $279,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows: The scrap value of the project's assets at the end of the project would be $15,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:

• A)2.0 years
• B)2.6 years
• C)2.5 years
• D)1.9 years