Harrison Corporation Is Studying a Project That Would Have an Eight-Year

Multiple Choice

Harrison Corporation is studying a project that would have an eight-year life and would require a $300,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project: The company's required rate of return is 10%. The payback period for this project is closest to:

A) 3 years
B) 2 years
C) 2.5 years
D) 2.67 years