FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The management of Lanzilotta Corporation is considering a project that would require an investment of
$208,000 and would last for 6 years. The annual net operating income from the project would be $104,000,
which includes depreciation of $15,000. The scrap value of the project's assets at the end of the project would
be $24,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to
(Ignore income taxes.): (Round your answer to 1 decimal place.)
Multiple Choice
1.7 years
2.9 years
2.0 years
1.5 years
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Transcribed Image Text:The management of Lanzilotta Corporation is considering a project that would require an investment of $208,000 and would last for 6 years. The annual net operating income from the project would be $104,000, which includes depreciation of $15,000. The scrap value of the project's assets at the end of the project would be $24,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.) Multiple Choice 1.7 years 2.9 years 2.0 years 1.5 years
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