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What is the payback period of the project

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Reference no: EM133048694

Question - The management of Your Corporation is considering a project that would require an initial investment of $1,148,000 and would last for 7 years. The annual net operating income from the project would be $98,000, including depreciation of $42,000. At the end of the project, the scrap value of the project's assets would be $20,000. What is the payback period of the project? You may need to round to match my number.

a. 8.2 years

b. 9.7 years

c. 11.8 years

d. 20.5 years

Reference no: EM133048694

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