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Calculate the payback period for Investment A

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Reference no: EM132074987

Question - Logan Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available:

Investment A

Initial capital investment $100,000

Estimated useful life 10years

Estimated residual value 0

Estimated annual net cash inflow for10years $20,000

Required rate of return 10%

Calculate the payback period for Investment A.

Reference no: EM132074987

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