Multiple Choice
Welcher, Inc.plans to purchase equipment with a cost of $142,500.The company expects annual net cash inflows from the equipment of $30,000.The equipment has an estimated life of 8 years, no estimated salvage life, and a required rate of return is 6%.The payback period for the equipment is closest to
A) 1 year.
B) 1.5 years.
C) 4.8 years.
D) 8 years.
Correct Answer:
Verified
Correct Answer:
Verified
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