(Ignore Income Taxes in This Problem

question 63

Essay

(Ignore income taxes in this problem.) The management of Torn Corporation is considering a project that would require an initial investment of $332,000 and would last for 8 years. The annual net operating income from the project would be $78,000, including depreciation of $38,000. At the end of the project, the scrap value of the project's assets would be $28,000.
Required:
Determine the payback period of the project. Show your work!

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