Eagle Company Is Considering the Purchase of an Asset for $100,000

question 80

Multiple Choice

Eagle Company is considering the purchase of an asset for $100,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Compute the payback period for this investment. (Round to two decimal places.)

• A) 2.85 years.
• B) 2.57 years.
• C) 3.00 years.
• D) 2.50 years.
• E) 3.62 years.

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Dow Jones Industrial Average, a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

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