Find the investment payback period in years is

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Reference no: EM132528436

Cornell Manufacturing Company is considering the following investment proposal:

Initial investment:

Depreciable assets (straight-line)           $48,000

Working capital                                      4,000

Operations (per year for 4 years):

Cash receipts                                      $30,000

Cash expenditures                               17,000

Disinvestment:

Salvage value of equipment                  $2,000

Recovery of working capital                  4,000

Question 1: The investment's payback period in years (rounded to two decimal points) is:

Option a. 1.50

Option b. 4.00

Option c. 3.56

Option d. 4.67

Reference no: EM132528436

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