Multiple Choice
If an asset costs $240,000 and is expected to have a $40,000 salvage value at the end of its ten-year life, and generates annual net cash inflows of $40,000 each year, the cash payback period is
A) 7 years.
B) 6 years.
C) 5 years.
D) 4 years.
Correct Answer:
Verified
Correct Answer:
Verified
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