Payback period of the project

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Reference no: EM13135151

The management of Morrissette Corporation is considering a project that would require an investment of $284,000 and would last for 7 years. The annual net operating income from the project would be $135,000, which includes depreciation of $37,000. The scrap value of the project's assets at the end of the project would be $25,000. The payback period of the project is closest to:

A. 2.1 years

B. 1.5 years

C. 1.9 years

D. 1.7 years

Reference no: EM13135151

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