Eagle Company Is Considering the Purchase of an Asset for $100,000

Multiple Choice

Eagle Company is considering the purchase of an asset for $100,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Compute the payback period for this investment. (Round to two decimal places.)

A) 2.85 years.
B) 2.57 years.
C) 3.00 years.
D) 2.50 years.
E) 3.62 years.