Rodriguez Inc

Multiple Choice

Rodriguez Inc.is considering a project that costs $200,000.The company expects the annual cash revenues to be $75,000 and annual expenses (including depreciation) to be $30,000.The project has a ten-year useful life and a residual value of $25,000.Assume Rodriguez Inc.uses straight line method of depreciation.
-Using the above information for Rodriguez,the project's payback period is
(Round your final answer to two decimal places. )

A) 2.31 years.
B) 3.20 years.
C) 2.14 years.
D) 2.50 years.