The payback period for the investment is closest

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Reference no: EM131211036

Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)

Investment required in equipment $500,000

Annual cash inflows $82,000

Salvage value $0

Life of the investment 16 years

Discount rate 9%

The payback period for the investment is closest to: (Round your answer to 1 decimal place.)

4.1 years

1.0 years

0.2 years

6.1 years

Reference no: EM131211036

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