What the payback period of the investment is closest to

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Reference no: EM132524017

Rents Corp. is considering a project that would require an initial investment of $280,000 for a machine. The project's incremental annual cash inflows are $145,000 and incremental cash outflows are $50,000. Annual depreciation on the machine is $21,000.

Question 1: The payback period of the investment is closest to:

Multiple Choice

a) 5.60

b) 1.93

c) 2.90

d) 2.95

Reference no: EM132524017

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